buy property for appreciation (dont need extra cashflow rightnow)

[Mandar Kunte]

Hi All BP members, 

I and my wife have good full-time jobs and have some cash on hand. I figured that REI is the best place to grow the money with tax benefits (mortgage interest, property taxes, depreciation). I have heard about cash flow vs appreciation and understand the logic of having some cash flow. But I am leaning towards properties that break even and have high appreciation so that i don't have extra income when I am in a high tax bracket here in California.

I am looking for suggestions on what is the best strategy.

1. get a property locally in A class neighborhood costing around $600,000 to 800,000 and hold long term for appreciation (no cashflow)

2. work with a turnkey provider and let them handle the portfolio

3. work with a real estate agent, property manager and invest out of state and look for cash-flow and appreciation (more work)