What are some Appreciation strategies?

[Wei Jie Yang]

What are some appreciation strategies when it comes to buying for appreciation?  I never thought about buying for appreciation until I listened to the recent Webinar from RWN. In that webinar the presenter was selling a strategy that was basically:

1) Have a bunch of low cost cashflowing realestate

2) Buy one or two pieces of real estate that are "likely" to appreciate. Ideally those should cashflow.

3) In 5 years, sell  the appreciated assets to pay for the high cashflowing ones and live off the cashflow from that. Or alternatively buy sell them off to buy more cashflowing assets. 

What does people think of this strategies? What other strategies do people use when it comes to appreciation?