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Updated almost 4 years ago on . Most recent reply

User Stats

8
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7
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Bo Black
  • Investor
  • Iowa
7
Votes |
8
Posts

Appreciation vs. Cash Flow

Bo Black
  • Investor
  • Iowa
Posted

I am kind of in the middle of two markets in which I want to invest in. One being a market that has had great growth and appreciation, but high prices causing low cash flow. While the other market has relatively low housing price with slow appreciation but rather good cash flow.

The market with faster appreciation and lower cash flow is a college city, and the market with good cash flow is an industrial city.

What are you going for?

Most Popular Reply

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338
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296
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Joshua Noth
  • Real Estate Agent
  • Austin, TX
296
Votes |
338
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Joshua Noth
  • Real Estate Agent
  • Austin, TX
Replied

Like @JD Martin mentioned, there are lots of other factors to consider for a decision like this.  In short, if the college city has seen consistent growth in years prior, I would lean towards that option.  If you are still positive in cash flow there, I would definitely choose that option.  Depending on your situation, you could also look to do a higher down payment and get better cash flow as well.  

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