When buying real estate why does cash flow matter if you are getting $100+ per month and it seems such a small amount to generate any wealth?

I am looking to buy my first investment property and have seen strong fundamentals in Indianapolis (job growth, population and median wage).As an out of state investor, I am looking to connect with investors/agents in the area to build further knowledge on specifics with the markets and hopefully bring business to in the future!

Terry,Yeah, you can use your commission toward your closing costs when buying your own home, but tax-wise, it’s not a clean wash.

If they buy something for your property and you pay them back, it’s just like you bought it yourself—so you can count it as an expense in your bookkeeping.If they don’t get reimbursed, then technically it’s a gift/donation, and you can’t deduct it as an expense.

don't be afraid of better markets in ohio like columbus. depending on the capital allocation buying old houses and having to renovate is not the only way to drive value. build rent refinance repeat and build to rent are both very strong market drivers as well and you can traditionally get infill land in areas like columbus in much better locations than where you buy.

I was okay with consistent cash flow without much appreciation especially when considering a portfolio of property as opposed to buying one unit at a time.

.🔹 Step 19 & 20: HVAC (Heating, Ventilation & Air Conditioning)A working HVAC system is a huge deal—no one wants to buy a house that’s too hot in the summer or freezing in the winter.

@Thomas FarrellRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

It's great to hear about your success with this multi-family buy-and-hold investment.

Some areas worth looking into:Centrally located neighborhoods like Alhambra and parts of Maryvale still have affordable properties with strong rental demand.West Phoenix (Tolleson, Avondale, parts of Glendale) offers good price points with room for appreciation.South Phoenix is seeing a lot of development and has solid long-term potential.Mesa and pockets of the East Valley can work, especially if you find something that needs light rehab but has strong rental demand.It’s definitely tough to get both cash flow and appreciation in today’s market, but if you’re strategic with your buy, rehab, and financing, BRRRR is still doable in Phoenix.