Importance of immediate cash flow when starting out

[Matt A.]

I started a topic yesterday about markets which are more or less likely to produce positive cash flow. Related to that- what is the opinion on how important immediate cash flow is?

I see that we want both cash flow AND appreciation. Posts here say CF is sometimes sacrificed for appreciation, while others say go for both simultaneously. My area of Seattle suffered less of a value hit during the last decline, and is well developed and stable from what I have seen so far.

Any investors who went through the first early years with negative cash flow? With a stable, appreciating area, is it to be expected? Or does every market, either slow or rapid growth, have areas which are undervalued and thus can be rehabbed and offer positive flow?

And are there ways to mitigate the hit you take when starting to invest?

I am particularly interested, of course, in what my fellow Seattleites/Washingtonians have to say!

Thanks All,
Matt