An asset that doesn't appreciate

[Dylan Osmon]

Just wanted to get some input on this dilemma I am having. 

I successfully bought a house at the right price in my market. I bought it cash and am Refinancing out all the money, yes all. ROI will equal infinity. This question would especially come up if I had the typical 20% equity into it.

Is it ok to buy an asset aka house that won't ever appreciate???

This particular home in the example is in a C- to C neighborhood. I don't think it will ever get better or worse. I do know in my heart that the street will never really appreciate(adjusting to inflation). I almost think of it as like AT&T stock where the price doesn't move much, but those dividends keep coming. The Cash Flow won't be anything to brag about on said property, but with nothing in it, the ROI is satisfactory.

My concern is that so many investors talk about their wealth truly coming from the long term appreciation. That's not to say buy negative CF, but appreciation is the cherry on top so I've heard. The other side of me says there is nothing wrong owning an asset that pays for itself every month, builds equity, tax benefits, etc.... especially one with no money in it. Would no appreciation still be ok with %20 of my money in it?, saying the ROI is sufficient.

I am young into my investing career and like so many strive for the CF at this stage of my goals. Brandon Turner has even mentioned some of his early properties in WA never appreciated. It sounded like the areas he bought in are similar to mine. Mississippi makes it tough with a declining population and not much appreciation. 

I don't know that I have a clear question to ask, just wondering on buying property that will most likely not appreciate, but Cash Flow to your want.

[Adam Mittermeier]

There are many different ways to invest, some hold for appreciation with little cash flow, and some hold knowing there wont be much appreciation, but heavy cash flow. So, in short, it really depends on what your goals are.