I Invest primarily for cash flow. Appreciation is just a bonus and hedge on inflation. I look for at least 5% cash on cash plus loan paydown and appreciation.
My strategy: Invest for cashflow until you replace your living expenses/day job. Then invest for appreciation even if it’s breaking even after all expenses.
Solid video, thank you for sharing. I think it all always comes down to being a long-term investor and whether an investment is growth overtime or pure value then doesn’t matter in the near term and isn’t situationally dependent. A recession isn’t going to last decades, but your investments should…
The video is accurate. But I don’t know how can you have the cash flow in this housing market unless if you are a cash buyer from California lol. I have the property. I will see the forced appreciation growth. If I rent my property? I would have some cash flow, but I rather use that for reserve cash for emergency back up. Now, for example, if you’re gonna buy 280k a townhouse for 30 years with 5.75 mortgage’s interest rate, you could find under 5 percent, if you did your research and homework. and a 20 percent down. I’d say too much money to borrow. So when we see the 2.5 or 3.5 mortgage’s interest’s rate???
I think appreciation is much riskier. You can ride through a crash with cash flow. I disagree that appreciation bounces back faster. Plus you risk losing your investment if you can’t pay the mortgage. Cash flow markets don’t crash as hard. You might lose 10-20k but an appreciation market you can lose 100k or more.
Team cash flow. I can bank on cash flow every month, but I can't bank on appreciation - we're long-term (10+ years) buy and hold so focusing on CF makes sense, as appreciation just allows me to hedge against inflation. Double-digit COC expectations.
