(3/19/18) John Larson, Managing Director of American Real Estate Investments (AREIUSA), joined Keith Weinhold, Host of Get Rich Education, to discuss appreciation vs. cash flow.
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.