Appreciation or Cash Flow - That is the Question

[Joe Moore]

Yes L.A. and the OC are great places to live but not the greatest place for the average real estate investor. I did say average because those with cash are still buying. Some are even tearing down the old replacing them with brand new dwellings. Our market here is in a rising price spiral for now. Eventually it will crash again. The thing about this, is that in each cycle the prices go even higher. If you want appreciation LA/OC is the place. The problem lies can you buy when it is a buyer's market and hold on until it is a seller's market. If you can, you will be well rewarded. Many investors here are price out of the market and that is why we have to go the out of state route to invest. So what is best for you? Do you buy and hold for appreciation or buy and hold for cash flow? I myself prefer the appreciation for long term but everyday living requires cash flow for me. I think I covered the problem why investors have to go outside their local area to invest. So what do you do? Stay local and do nothing or head for the nearest exit and start making some headway in an out of state investment? You make the call.