Worth it if the property may likely only cash flow?

[Danielle McClelland]

We're going to look at a townhouse tomorrow that has great rental potential, based on some of the rents I've seen for the same community, and the perfect price point. Using BP's rental report, it looks like the cash-on-cash ROI will be 9%. I've noticed with many condos and some townhouses that the cash flow may be great but they don't go up much in value (maybe 5K over time based on some of the listings I've dug into - and they're in desirable areas).

What are your thoughts on properties that may only cash flow and not appreciate a ton? Is it worth it? I'm leaning towards yes, with the intention to keep this as a very long term rental property after paying it off. Is that the only scenario when it's worth it?

Bonus

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Funny story about going to see our first potential investment (didn't end up buying it) - the tenant was still there and ended up having 3 cats and 2 dogs inside property (she would've been gone if we bought it!). As we're looking at the living room, her cat latches onto my husband's back with all 4 paws; hanging on for dear life. LOL in the moment it was jarring, but hey we now have a funny memory.