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Updated almost 8 years ago,
Cash Flow VS. Appreciation
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.