How Does House Appreciation Bring In Profits?

[Account Closed]

Hi, so I heard that if you’re buying a investment property that it should be in a good location so the house could have a good appreciation, so I was wondering how that appreciation would bring in profit and how would I obtain it?

[Joe Gonzalez]

Hey Christian,

Real Estate historically tends to appreciate overtime - this means that it's value goes up. However, this is not always the case so buying solely for appreciation makes one more of a gambler.
My suggestion to you is to buy investment properties based on Cash Flow as opposed to appreciation, this means that if for any reason your property did not appreciate like you thought (or at all) it would still be bringing in a healthy income.

Hope this helps.