BRRRR - Buy, Rehab, Rent, Refinance, Repeat
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hospitable-deef083b895516ce26951b0ca48cf8f170861d742d4a4cb6cf5d19396b5eaac6.png)
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_trust-2bcce80d03411a9e99a3cbcf4201c034562e18a3fc6eecd3fd22ecd5350c3aa5.avif)
1031 Exchanges
presented by
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_1031_exchange-96bbcda3f8ad2d724c0ac759709c7e295979badd52e428240d6eaad5c8eff385.avif)
Real Estate Classifieds
Reviews & Feedback
Updated over 2 years ago on . Most recent reply
![Anna Washburn's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2540561/1663009249-avatar-annaw78.jpg?twic=v1/output=image/crop=1170x1170@0x262/cover=128x128&v=2)
Agree or disagree....
Investors should be focusing on appreciation and not cash flow with rentals in this shifting market...
Most Popular Reply
![Greg Scott's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/242769/1621435699-avatar-drivehome.jpg?twic=v1/output=image/crop=1195x1195@33x77/cover=128x128&v=2)
Greg Scott
#3 General Real Estate Investing Contributor
Pro Member
- Rental Property Investor
- SE Michigan
- 5,645
- Votes |
- 3,934
- Posts
I disagree.
In single family rentals, what can you do to change the level of appreciation? Nothing. You are at the mercy of the market, and in turbulent times, it can take a long time for a market to shift in the right direction.
Those buying zero or negative cash flow properties may not realize how much risk they have created for themselves. Lose your job and have an AC go out. Now you have no cash to fix the AC so the tenant moves out. Now you can't pay the mortgage, and soon the whole house of cards can come tumbling down.
If you have cash flow, your business is self sustaining and can take a hit like a down AC unit. Appreciation will eventually happen everywhere. I like knowing my portfolio will survive to see that day.
In single family rentals, what can you do to change the level of appreciation? Nothing. You are at the mercy of the market, and in turbulent times, it can take a long time for a market to shift in the right direction.
Those buying zero or negative cash flow properties may not realize how much risk they have created for themselves. Lose your job and have an AC go out. Now you have no cash to fix the AC so the tenant moves out. Now you can't pay the mortgage, and soon the whole house of cards can come tumbling down.
If you have cash flow, your business is self sustaining and can take a hit like a down AC unit. Appreciation will eventually happen everywhere. I like knowing my portfolio will survive to see that day.