180: Appreciation vs. Cash Flow: What Do You Want Most?

Stop looking at properties. (What?) I discuss. Are you in real estate for appreciation, cash flow, or something else? If you focus on cash flow, does that mean less appreciation, and vice versa? We discuss when a market becomes “too hot to buy for cash flow” any longer. The Midwest has more affordable property and better cash flow but less recession resilience. Dallas-Fort Worth keeps showing appreciation potential, but cash flow is drying up. When a market heats up, rents don’t “keep up” proportionally to a property’s market value. We also discuss low appraisals. Appraisals are what the bank uses to verify the quality of their collateral.

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00:54 Stop looking at properties. (What?)
03:36 The importance of cash flow, appreciation.
07:07 The Midwest: more affordable housing, better cash flow, but less recession resilience.
08:52 Dallas-Fort Worth’s appreciation.
11:00 When a market becomes too hot.
14:48 “Lump Sum Cash Flow” defined.
16:23 With 5:1 leverage and 6% appreciation, $100K becomes $300K in five years.
18:22 Blended portfolio.
21:10 Median rent income vs. median housing value.
25:17 Why low appraisals can occur.