Buying & Selling Real Estate
Market News & Data
General Info
Real Estate Strategies
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hospitable-deef083b895516ce26951b0ca48cf8f170861d742d4a4cb6cf5d19396b5eaac6.png)
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_trust-2bcce80d03411a9e99a3cbcf4201c034562e18a3fc6eecd3fd22ecd5350c3aa5.avif)
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_1031_exchange-96bbcda3f8ad2d724c0ac759709c7e295979badd52e428240d6eaad5c8eff385.avif)
Real Estate Classifieds
Reviews & Feedback
Updated about 8 years ago on . Most recent reply
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.