Did I misinterpret an agent?

[Account Closed]

I had a lengthy discussion with an agent/investor/property manager. I'm trying to get my foot in the door and I met her at a SCORE session as she was the main speaker. From what I've read here (and what I want) is cash flow not bank on appreciation. I live in the very volatile market of South Florida. She said I shouldn't look for cash flow just have the tenants be paying my mortgage to build equity. I was a little surprised by that as the rents here now would not even cover the mortgage as it's expensive again in South Florida. Am I misinterpreting her? Thanks

[Christopher Brainard]

@Account Closed

Appreciation is gambling - even for the highly informed and educated. Newer investors should restrict gambling to the casino and only use the money they can afford to lose, but older more seasoned investors can afford the risk. Basically, before you buy the property, work out your worst case scenarios and ask yourself if you can afford it.

Most new investors should focus on cash flow. It pays the bills and provides cash to expand your holdings. Mortgage paydown is also a great benefit, but remember, most mortgage notes are amortized over 30 years, so the paydown is slow. Without any cash flow, you can be stuck waiting for years to amass enough equity to do a cash out refinance and it can severely hamper your ability to create a portfolio.

-Christopher