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Updated about 8 years ago on . Most recent reply

User Stats

39
Posts
33
Votes
Sam T.
  • Chicago, IL
33
Votes |
39
Posts

Cash Flow VS. Appreciation

Sam T.
  • Chicago, IL
Posted

I currently purchased all of my portfolio geared towards cash flow.  I keep reading that its better to buy for appreciation then it is for cash flow only.  The area that I am renting in are c-d neighborhoods and I can pickup a unit and have it ready to rent for about $35000.  Most of the rentals I target are 3 bedrooms and I can usually get $1150-$1200 month rent with the tenants paying utilities.  If I wanted to buy in a a-b neighborhood it would cost me around $125,000-$140,000 per unit but the rent would be higher at around $1300-$1400 per month.  Is someone able to explain to me how buying something almost 4x the cost and almost similar rents is better.  I would like to start to invest in better areas but the numbers aren't making sense to me. 

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