Lately, I notice many posts begin to ask questions on "Cash Flow" vs. "Appreciation", that reminded me, these were same questions raised 3 years back, when this forum first form.
This forum was separated from Home forum in 07, RE was so hot, RE investors begin to chase ultra high appreciation. Many forum members share their stories on how to make 25-50k by just signing a construction contract, and value RE investing was put aside.
There were only few members argue that high appreciation, also translate into high risk. in 08, I wrote these.
| investment RE must cash flow, cash flow and cash flow |  |
many ppl here more interest in ultra high appreciation in RE and sacrifice with negative cash flow, they need to relearn the truth of RE investing in a long term market.
RE investors need to look at how to minimize upfront cash investment, and maximize positive cash flow, providing a consistent cash income and appreciation over time, nothing beats $0 investment but with 150k cash income and 300k appreciation each year.
3 years later today, not many old forum members left, most of them came and gone, the ones the still here, are these sticking to the basics.
I know RE market is recovering in most areas, even in Indiana, my area is almost back to its all time high, but only eying on appreciation instead of true positive cash flow, can be dangerous.
I am not saying high appreciation is bad, but as an investor, market will always going up and down, one should always prepare for the worst...
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