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Updated over 2 years ago on . Most recent reply
![Andy Okamoto's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2195197/1650051075-avatar-andyo49.jpg?twic=v1/output=image/crop=316x316@0x10/cover=128x128&v=2)
Is investing for appreciation a good idea? (First Time Investor)
Hey everyone! I'm Andy and I'm a 20 year old software college student at the University of Utah. I'm looking to buy my first house hack in the Salt Lake area (already prequalified) and wanted to share my thoughts and questions about the current market.
As I'm sure all of you know, interest rates are on the rise and the Fed has announced they will continue to do so. Thus, this makes it difficult to find cash-flowing properties (at least on market) unless I search for properties farther out into the "undesirable" areas of Utah. What is everyone's thoughts on moving more towards an appreciation play? Where although I won't be cash-flowing, I will be making small monthly payments for a nice property in a great "desirable" area with "higher-quality" tenants. As an avid listener of the BP podcast and reader of real estate books, I have heard many times that investing in appreciation is more "speculative" which is understandable. I just wanted to hear everyone's thoughts and any advice they can give for an aspiring investor like myself.
P.S. If you are in Utah, I would love to connect as I am always eager to learn!
Thanks so much in advance,
Andy Okamoto
Most Popular Reply
![Kwame Amoako's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/1357106/1621511598-avatar-kwameamoako.jpg?twic=v1/output=image/cover=128x128&v=2)
I think an appreciation plan for an owner-occupant property is fine, at the end of the day you are reducing your living expenses. If cash flow is more important to you then perhaps look a little further out or find a happy medium.