Best cities in the country for appreciation AND cashflow

[Joseph Hennis]

My strategy thus far has been to find properties that cash flow $300-500 a month in areas that appreciate. While the cashflow I have earned thus far has been mediocre ($3k-5k/yr for last 5 years), the appreciation has been huge ($526k, huge for me anyway, lol).

I am hoping to repeat this success with my future purchases, but I know it won't work in the areas I bought in previously. They have already appreciated beyond the price for which they would cashflow.

So, what areas right now still have decent cashflow (monthly rents are 1-3% of purchase price), and are in an area that historically has seen, and is likely to see again, appreciation?

Thanks BP!

[Joseph Hennis]

@Diane G. clearly it does exist. I have already done it. I will do it again. It's not that hard. Just gotta be patient.

@Andrew Johnson I disagree with you on some of that. Appreciation isn't just a guessing game or gamble, there are strategies to position yourself to get it when it comes, but you are right, it is not predictable in the short term. It's kind of like they say in the BP podcasts, you make your own luck by being out there and talking to people. In the rental market, you make your own luck (for appreciation) by being in the market and owning rentals. That doesn't mean you should buy barely cashflowing properties in a place that has, and will likely never have, appreciation. 

@Maxwell Lee Yeah I'm not looking for a confident answer. Appreciation doesn't work like that. One thing to look for is an area where the market is depressed currently, but historically the area sees appreciation (like california, 2008-2013).

Look, there are articles out there with EDUCATED guesses. Educated because they analyze trends and look at market data. No, no one has a crystal ball and will know what will happen in the next year, but over much longer periods of time, the market has predictable cycles. I am a patient investor.

In any case, I will be earning money from the cashflow and debt repayment, long term. Just don't really want to be in an area where it will never appreciate. I already have some ideas and places on my radar. Just wanted peoples' opinion on some other good places out there. Maybe I have missed an obvious one.