Cash flow is important, but appreciation, principal paydown, and tax advantages are also key factors in long-term real estate success.Your logic makes sense—if your investment property’s rent offsets your primary mortgage and you’re in a strong appreciation market, it could still be a great long-term play.

I am newbie in real estate and I don't have much experience in real estate. 

I am a new real-estate investor looking at flipping properties in a higher end neighborhood.

The use of the accelerated depreciation strategy helps real estate investors to reduce the tax liability immediately which therefore increases their bottom line due to the offsetting of income.

A lot of people tend to mingle these things when they talk about "break even" or "cap rate", but that leads to a lot of confusion.Let's use some real numbers which may be easier to understand. 

Is that because you don't know what your Real Estate goal is?

OP why are you in a Real Estate forum.  

Beyond residential lending, I have a strong interest in commercial lending and real estate investment. 

@James TobinJames, congratulations on deciding to take the first step into real estate investing!

Hey Trevor, welcome to the real estate world!