Looking beyond cash flow in Raleigh

[Yogesh M sayanakar]

Hello!

I am a first time investor in a particularly interesting market. I am looking to invest some savings we have from W2 income savings. While we dont depend on the cash flow, taking a negative cash flow property seems like a risk expecially in year 1. With a recession imminent, would you recommend buying a cashflow negative propoerty at 5% cap rate? I have been listening that in a high growth market, it might make sense, because you will make quicker equity, but that sounds speculative. Appreciate any advice, thanks in advance. 

[Carolyn Yates]

The Raleigh market has seen such appreciation.  No one has a crystal ball, but if prices should fall it may be difficult to sell your investment and the negative cash flow may make it less attractive to hold onto long term.