Cap rate which is what the discussion is about takes into account cash flow and does not take into account appreciation.

I don't like condos because of HOAs - each HOA is different of course, but that's $95 a month in cash flow that you're missing and assessments can kill you over the long term.

Isn't that called ROI or cash flow percentage in the investor world?  

The deals I have been looking at are solid prospective investments in terms of potential cash flows.

But if there is cash flow, might be better to hold it.

I've definitely made some money both on the cash flow and appreciation (appreciation was a surprise in most cases).But that being said, the exit strategy is difficult and I can see why people lose money on these ventures.Four pitfalls I see:#1 Lack of control:  Depending on property managers who in most cases do not have your interest in mind.  

You get potential cash flow, tax shelter and appreciation.

Does all the cashflow return  back into the IRA and will I have to pay taxes on the cash flow taxable within the year it is generated or not until i take it out? 

More money is apparently flowing into the SFR rental space thus most likely driving prices higher.

You should be buying it because you can find a a right priced property that will cash flow with the properly vetted tenants in there.