It depends greatly on your investment goals, but I look for cash flow first as it is more predictable while appreciate is icing on the cake, as you said, because it's more speculative.

I just think in areas that are not speculative plays like New York City, this may be a better approach. 

Also, given how hard it is to insure an old brick home, there's a decent chance that it wasn't covered for the earthquake (though that's just speculation on my part)...

Of course this is all speculation though. 

Speculation = Guessing what the market will do next.Facts = calculating actual cash flow on a deal.Motivation = my cash in the bank at 0% interest during rapid inflation.

I have enough to pay the 20% to avoid PMI, but being that it is winter, speculation of the market being so unpredictable, etc.

I can only speculate that it's for the following reasons - these deals often oversubscribe, investors who want in very often can't get in, as so many investors from previous deals roll into new ones.

@Jeff He not sure where you are getting $200 from, 100% incorrect unless you are talking about a 50 unit building with an enormous parking lot .BTW I am not speculating as I have extensive experience years of PM, and about 500 flips  All the best  

At the same time investing purely for appreciation is risky and speculative since you never know what the market will do.

Return on Equity-Speculating on price increases is a lot less stressful when you have significant cash flow-Renting to Section 8 tenants was not an issue to us at all Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?