BP Poll: Are you in it for the cash-flow, appreciation or both?

[Brian Beadle]

Im curious as to which strategy everyone is after these days. I realize this is a very location sensitive post so if you could provide your primary investing area it would be extremely helpful. I feel most newbies (such as me) are too focused on the monthly cash-flow, AKA the monthly number that allows us to quit our beloved day jobs, while the true wealth is generated slowly from the leveraged investment appreciation.  

[Account Closed]

Cash-flow helps people get off the rat race.  Appreciation helps people build wealth.  If they can achieve both, more power to them.

As Bob alluded above, history has indicated that cash-flow tends to follow appreciation. I'm fortunate enough to witness it first hand. A 1-bedroom in our area was renting for $1k/month in 2011 is now renting for $1,500-$1,600. A 2-bedroom was renting for $1,300 is now renting for $1,900-$2,000. 

The cash-flow can be abysmal at first in appreciation markets, but can be quite juicy in the not too far distant future so is the equity from appreciation, which can be tapped tax-free. There is no right or wrong answer. It depends on one's goal. Build wealth first, or get off the rat race first. Which path would get people to their goal faster? To shorten the learning curve, consider listening to other successful investors who have gotten there and see which path suits your goal.  Yes, they lied. One size doesn't fit all.