CoC vs Appreciation

[Mahdi Mike]

I just to plan for real estate investing, and already used some of real estate investing calculator for cash on cash calculation.

I’m looking on long term investment and perhaps as a resource for retirement in next 20 years.

My main concern is considering current market and houses I picked in Frisco and Plano TX most of them gave me negative cashflow for 7 years and then start to pick it up. I prefer to pick houses in this area simply because I thought they have better vacancy rate.

My question is , when it will worth to have a negative cash flow?

I would rather to have pay up to $500 per month from my pocket and have a peace of mind with less headache of tenants and maintaince etc

What would you suggest?

[Greg Scott]

When is it worth it to have negative cashflow?  ALMOST NEVER.  Ironically, there are many California people who regularly, and angrily disagree with me on this forum about this topic.  Ironically, I have made much higher appreciation the past 5 years than my San Diego detractors by NOT investing in California.

Texas is a great market.  I've had and continue to have many investments there.  Learn how to buy at a discount and find cashflowing properties and then you get both cashflow, forced appreciation appreciation, and if you happen to get any natural appreciation, that is icing on the cake.

FWIW, check out LIfestyles Unlimited.   They have an office in Las Colinas that can teach you how to do this.  Better yet, come to their Expo in Las Colinas in mid February.  I'll be there and 5,000 of my investor friends.