180: Appreciation vs. Cash Flow: What Do You Want Most?
By Keith Weinhold
#180: 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. Want more wealth? 1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book 2) Actionable turnkey real estate investing opportunity: GREturnkey.com 3) Read my new, best-selling paperback: getbook.at/7moneymyths Listen to this week’s show and learn: 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. Resources Mentioned: Dallas property: GetRichEducation.com/Dallas Kansas City property: GetRichEducation.com/KC St. Louis property: GetRichEducation.com/StLouis GRE Book: 7 Money Myths Mortgage Loans: RidgeLendingGroup.com Cash Flow Banking: ValhallaWealth.com Find Properties: GREturnkey.com Education: GetRichEducation.com