Novice investor - REQUEST FOR HELP

[Anand Narayanan]

Hello BPers - I am looking to invest in Townhomes in the Cary NC area. Off late, the prices have skyrocketed (~500K) leading to bidding wars. I am unable to comprehend how math works with such high prices for investing and renting. I tried the rental calculators and it shows negative cash flow for the first 3+ years. These dynamics are shaking up the goal of cash flow vs appreciation and not sure how much the prices will increase (I understand the prices are relative). Can you please help with some insights on either of the goals (appreciation vs cash flow) to start my investing journey? Trying to get the maximum out of the precious capital available. Do we need to be thinking about moving away from the hot markets to adjacent areas? Thank you very much for all your expert advice.