Cash Flow is Starting to Disappear

Cash flow vs. appreciation has been a fiercely fought debate between many real estate investors for decades. Cash flow investors love to tout the fact that consistent rental property profits allow you a life of freedom, while appreciation investors argue that cash flow doesn’t build wealth, it merely keeps you treading water. There’s arguably no better panel to ask about this topic than America’s best wholesaler, investor, and flipper trio—James Dainard, Jamil Damji, and Kathy Fettke.

James, Jamil, and Kathy have a view on the appreciation vs. cash flow topic that most investors don’t possess. All three of these investors have bought, sold, and held real estate before, during, and after the great recession, meaning they aren’t subject to the 2020 and beyond “hot housing market” stigma many new investors fall into. They’ve seen what a good, bad, and ugly housing market can look like, and, unsurprisingly, they reach almost the same conclusion.

Maybe you’re a new investor, looking to buy in a high-appreciation area like South Beach or a cash-flow crazed, FI-chasing rookie who thinks the Midwest is where it’s at in terms of wealth-building. No matter where you stand on the subject, this episode will give you decades of investing context that should help you make far better returns in the long run.

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In This Episode We Cover

  • Rent growth, appreciation, and the surprisingly most unaffordable state in the US
  • Cash flow vs. appreciation and which strategy makes sense for which investor stage
  • How to force appreciation so you never have to rely on outside market conditions
  • Why forecasting your market is far superior to trying to time it
  • Whether or not cash flow is too slow of a strategy to build real wealth 
  • What happens to appreciation if a housing market recession is on the horizon
  • And So Much More!

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2022-05-02 06:02:27

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