Cash Flow vs. Appreciation

[Brian Chan]

Location A: Positive Cash Flow + 4% Appreciation each year (as such locations which the 1% rule apply)

Location B: Breakeven Cash Flow + > 4% Appreciation each year (locations with higher appreciation like Austin and SF Bay Area)

In your opinion, would you seek higher appreciation if you can find break even cash flow properties? Or you would rather seek positive cash flow with high Cash on Cash Return?