I wanted to ask for your advice regarding a decision I’m putting in front of myself: I’m trying to decide if my next investment property should be a play for appreciation or cash flowI’ll try to give enough numbers and information to hopefully provide you with the ability to help provide your guidance.My Current Portfolio- 7 “cheaper” cash flowing properties (values ranging between $140-$210K) in Las Vegas, NV- 2 “expensive” appreciation properties (values ranging between $650K-$820K) in Orange County, CA- Monthly cash flow (for all 9 properties): $2,600Other Relevant Information- I’m currently working full time- I have enough savings to last me more than 2 years (without a salary)The Investments I’m ConsideringOption 1- SFH in Orange County, CA, for $650K with negative monthly cash flow of $300- 30 year loan with 25% down payment of $187,500Option 2- SFH in Orlando, FL, for $170K with positive monthly cash flow of $270- 30 year loan with 25% down payment of $42,500Pros and ConsOption 1CONS:(a) Negative monthly cash flow(b) Large down payment(c) Even larger exposure to market in Orange County, CA (would be 3 properties)(d) I would likely have to sell one of my existing Las Vegas homes to come up with down payment (otherwise I’ll have too many mortgages to qualify for a new one)PROS: (a) Potential for larger appreciation (10% potential appreciation in 5 years of $650K vs. 10% appreciation of $170K), so I feel it is a better long term play(b) I’m not sure if you guys typically give this much weight, but when I include the larger principle payment that would be made every month (e.g. around $800), it changes the monthly cash flow equation if one chooses to consider it, making it more attractive (long term)Option 2CONS:(a) I feel it’s a weaker long term play (less appreciation potential)PROS:(a) Positive monthly cash flow out of the gatesGeneral Notes- I feel I can sustain the monthly cash flow in both cases- I am only considering taking on the larger property (Option 1) because my other cash flowing properties provide me some buffer. - However, I’m wary of pushing the limits too far and exposing myself to too much risk (debatable what is “too much”)ConclusionI'm looking for your advice/guidance about my above decision.

If anyone can shed light on this I'd be much appreciated!

Can anyone shed any light on some potential pitfalls of investing in these areas?

No bank is going to touch with with a bankruptcy just 3 years ago, and that loan is a huge weight to drag with such low income. 

Other's just say to contact the city.Anyone have experience and would like to shed some light on a new guy?  

More weight will be given to the price per unit and/or price per square foot given the size of the building - smaller buildings are weighted more in "price per pound" so to speak.If your intent is to list it and let the market compete (which you should if price is most important) - then your market will affect how much you can pro forma rents.

Those three items currently take up the vast majority of the back yard and since the wife and I have a little one, we are contemplating taking out the parking spot north of the shed and fencing the whole back yard in and build some nice garden beds.

Hoping some of you who know Southern California might be able to shed some light on this.

If you search high and low and can't seem to make it work, then it may not be as good a deal as it may sound.BTW, I hear comps are harder to do on multi-family homes because it is more the structure of the rents and expenses that sets the price...Hope that may shed some light!

Includes shop and storage sheds.