No way I could have done as well with good cash flow but no value add or appreciation.For those without significant reserves, cash flow can be necessary to handle regular events (maintenance/cap ex, vacancy, property tax and/or insurance increase) as well as potential unexpected events (tenant not paying and not vacating, rent decrease, etc).  

On the other hand, there could be depreciation expense reducing the income, but that is a non-cash expense so it doesn't decrease the cash flow. 

I once purchased a townhome in area I had no idea about and realized too late that the home values were decreasing and the neighborhood was tanking.

It takes a LONG time for homes to decrease in value.

I would make no assumption that prices will come down minus a catastrophic decrease in demand.People mistakenly assume that price increases correlate to cost increases, but in many cases these increases are to increase margin.

And as cap rates rise, values decrease. 

If you that I see around here is one you start going to stick and larger units the noi % starts to decrease rapidly because you get into a point that you're competing with hedge funds.

That uncertainty around whether the US can avoid a shutdown in a month and a half (when the current short-term deal that got McCarthy fired expires) decreases confidence in US Treasuries and whether debt will be continually serviced. 

But I'm a firm believer that if you screen tenants properly and are a good landlord, then the chances of you running into an issue significantly decrease.

I knew how to increase rents and how to decrease expenses.