The icing on the cake is the ridiculous New Jersey taxes, which are assessed at an ungodly high value for a place like Paterson.My recommendation: stick with the Anchorage plan.

@Joe Villeneuve, Aah, yes, your logic makes sense: HML want to have their cake and eat it too - no/low risk and exorbitant interest rate to boot!

I live in Brooklyn where the market is exploding and would love to focus on investing here for multiple reasons, Convenience - Its where I live and there's no need for an hour drive,  Lost opportunity - property values are  rapidly appreciating, Funding - its far easer to find a cash partner for deals in Brooklyn as its "the area" where everyone wants to investMy previous deal however was in Long island where its much calmer and easier to find a deal (its far from a piece of cake...)  

Those are good choices where you should get a mix of cash flow and some icing on the cake with appreciation.

My mantra will be: equity is the icing on the cake; cash flow is the goal.Thanks, BP for a great site, and can't wait to be a part of the community,Morgan

If it doesn't, icing on the cake.

@Dan BoreckiThe 2.75% rate is icing on the cake as the lender told me this "after" all our conversations.

I enjoy baking and decorating cakes in my spare time.

Talk about prehistoric software....rebo takes the cake!

   " I only buy for cash flow appreciation is just icing on the cake"that mentality has led many undercapitalized folks starting with their first rental house.. the banks may require some reserves when the loan is made then they do what most other red blooded Americans do and go buy stuff  LOL   not all but many.