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Updated over 1 year ago,

User Stats

4
Posts
8
Votes
Rachel Simpson
8
Votes |
4
Posts

Buying in an appreciating market vs. buying for cash flow

Rachel Simpson
Posted

Hi all. I am analyzing a deal that is outside my comfort zone and I am very much in my head and overthinking it. I am hoping for insight from more experienced investors.I currently invest in a class C (probably C-) area that provides fantastic cashflow but will likely not appreciate as well as other markets. 

I have the opportunity to purchase a duplex (Class B neighborhood) in an area that is seeing job growth and with steady increase in both rents and real estate prices. Professionals/ hospitality workers are moving to the area as they are being priced out of the nearby tourist areas where they work. It is also near a large naval base that is going to be adding more jobs, as well. Large development of very nice single family homes being planned for in that area. 

Here is the catch. Right now, it will cashflow MAYBE $50 a month when considering capex, maintenance, etc (Thank you, interest rates). It would be an appreciation buy, mostly. INSIGHT PLEASE! I feel like I need a property like this to balance out my doors in a less savory market.

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