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.
Dave:
This is On The Market, a BiggerPockets podcast presented by Fundrise. If you were expecting an inflation show today because you listened to last week’s episode and we mentioned that, I’m sorry. My computer had a meltdown while we were recording that show and we’re going to have to come back to that in the future. But we have a great episode today that I think you’re going to enjoy.
Hello, my friends, and welcome back to On The Market. Today we are going to wade into one of the age old debates in real estate, cashflow versus appreciation. We’ll also be doing a two truths and a lie news quiz, and we’re revealing our top real estate…