Fundamental Question: Cash Flowing Markets vs Dallas

[Youssef Labib]

I am a newbie investor out of DFW. Initially wanted to invest here for the long-term appreciation. But noticed that many midwest markets can produce really good cash flow (30%+ CoC), and only slighly lower appreciation than that of Dallas.

Using historical data, Dallas appreciated 8-10% annualized on 3, 5 and 10-year basis. On the other hand, a city like Cleveland, appreciated 5-8% annualized on 3,5 and 10-year basis. With such high cash flow, why would anyone invest in Dallas where appreciation is 'not guaranteed' and deals are hard to come by, compard to cash flowing markets? That's not even considering the lower capital needed to start.

i understand that these are overly simplified numbers, but the trends are useful to talk about. Appreciate your insights!
  

[Jason Hirko]

@Youssef Labib There are plenty of markets within Texas that will provide you with high cashflow, even within DFW, but I would encourage you to look further back than 10 years. A lot of the growth in Cleveland, as you used as an example, was because it was clawing back the massive hit it took in 2008 and 2009, which was much less significantly felt in Texas. At the end of the day, a lot more goes into investment decisions than just cashflow and appreciation.