Cash on Cash returns or Long term appreciation?

[Babu Ramadoss]

Hi

As I look to invest on real estate and try to decide on an area to invest, I am caught between two parameters : Cash on Cash ROI v/s long appreciation rate. Places that have a higher appreciation rate have a heavy property tax. The hefty property tax eats into your Monthly ROI as you shell out $300 - 500 per month on annual property taxes. The places with low appreciation rate has lesser property taxes and gives you a handsome Monthly ROI. I believe Real Estate investments are typically for long-term gains (unless you are flipping the houses). So what should be my main driving parameter to decide an area of investment : Immediate monthly cash on cash ROI or Appreciation rate? Can experts help me with their opinions?