Appreciation or Cash flow

[Jack Perfett]

Planning to get my real estate investment journey started within the next six months and am still back and forth between SFH and Duplexes. In terms of fast tracking the early stages of my real estate investing career would it be better to put an emphasis on the appreciation of the property or the cash flow of the property. I'm aware usually SFH are more of a appreciation investment and duplex is more cash flowing. Would love to hear your input. Thanks!

[Cameron Tope]

Hey Jack,

Great question! I always bought for cash flow when I started then I realized that I'm making more money with appreciation. I now will buy properties that don't cash flow, if they are more likely to appreciate. Remember, appreciation is never guaranteed but you get your cash flow every month. 

When starting I think it's smart to buy for cash flow, because you have a cushion for your mistakes. Then as you build your portfolio you can decide if you want to add properties for appreciation or more cash flow. 

Best of luck!