Investing in Non-Growth Areas

[Sasan Salimian]

Hi everyone! I am looking to just get started in real estate and live in the Harrisburg, PA area. The inner city is pretty rough and class C-D, but outside of the city, from what I understand there are class B properties that might be good in terms of cash-on-cash returns (~10-15%) and overall safer bets. I am not confident in the long term growth prospects of the area. Nevertheless, my intention was to invest in such a property given strong projected cash flow. However, in a recent conversation with Home Union, a national turnkey-ish company, they stressed how important it is to invest in high-growth and "emerging markets," and said that I should accept cash-on-cash returns of ~4-5% in exchange for the higher long-term gains and reliability of tenants to pay rents in these growing areas.

I am conflicted because everything I have read stresses cash flow so strongly and that appreciation is just "icing on the cake." What is your take on this, BiggerPockets? Should I invest locally or only in emerging markets?

Thanks so much in advance for any advice!!