appreciation vs monthly rental

Amazon UUsUsa
Jul 23 12 Comments

it makes sense to buy a property in bay are as it appreciates the fastest in bay area. issue us its expensive and rent you get is relatively lower.

if you buy investment property in midwest it doesnt appreciate but rent to investment ratio is better.

anybody has a comment on this dilemma ?

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TOP 12 Comments
  • Oath Atinlay2
    Appreciation is not a guarantee! You need to learn more about the market. You’re literally buying high and hoping for higher. In one of the highest taxes states in the country.
    Jul 23 2
    • Amazon UUsUsa
      OP
      I see it happening for last 25 yrs
      Jul 23
    • Oath Atinlay2
      That is everywhere. It’s also called “inflation”
      Jul 23
  • LinkedIn Wiener
    Historically it appreciated faster. Doesn’t mean that will continue into the future.
    Jul 23 0
  • Amazon pokeman
    For long term rentals, I look for positive monthly cash flow. Like Atinlay mentioned, appreciation is speculation and not guaranteed
    Jul 23 3
    • Amazon UUsUsa
      OP
      Nice. Where do you find them ? Midwest ?
      Jul 23
    • Amazon pokeman
      Yup. Small college town I went to school in for a couple years.
      Jul 23
    • Salesforce sendherbk
      How much do you make from 1 property? And were you cash flow positive from day 1 ?
      Jul 23
  • New 76574
    Personally I prefer cash flow as I don't plan on ever selling any property I buy (at least not any time soon). The leverage, and tax benefits of a loss on paper help. If I am looking for cash flow I'm looking for more blue collar small multi-family (duplex-4plex etc...)
    Jul 23 1
    • New 76574
      And if I'm looking for appreciation I go for single family. I'm in Austin, though so not dealing with the Bay Area craziness. But deals here are much harder to come by then they use to be.
      Jul 23
  • New / Other
    DuQvV7y

    New Other

    BIO
    Did stuff. Hustled hard. Retired
    DuQvV7ymore
    Considering Midwest is a huge place, I can’t answer for all of it.

    I own in 2 slices of the Midwest: Columbus and Indianapolis. I’ve averaged 10% appreciation in Columbus (Short North/Downtown) & 5% in Indianapolis (Riverside).

    And I’m not counting the properties I (literally-ish) stole in 2009-2012. Because the appreciation there is just obscene.

    I don’t know what you folks expect in SF, but I’m very happy with 5% YoY appreciation with a 3% yearly rental bump.

    Cheers Coasties.
    Jul 23 0
  • Intel Act2016
    Crashed hard in the late 90s. Had to chuckle back then too.
    Jul 23 0