bearkeley
Recycles dryer sheets
- Joined
- Aug 20, 2005
- Messages
- 299
In running cash flow analyses on new rental property prospects, we are realizing just how lucky we were to have bought properties right before the prices started going up, and more importantly, right before the interest rate hikes. Now, the hard part is finding properties where the numbers aren't working out as "easily". We are very conservative (others might call us stupid), but we are running the numbers based on a 20% down, 30 yr mortgage versus interest only (we are 2 years away from being FIRE - if we play our cards right) and prefer to have the security in the properties.
We are considering the following:
1) Apartment building in Atlanta area - positive cash flow (not much); however, we don't live in the area and latest analyst talking about Atlanta as a rental market stated that it was "a wild card"
2) Multiple single family homes (we're doing a 1031) in a rural part of Virginia, 2 hours from Washington DC. Negative cashflow, but we know the area well and are pretty confident that there will be appreciation (clearly not as high as it has been)
So - the question is: Would you invest for cash flow, even if it's small, or go for the appreciation and eat up the difference?
Thanks!
We are considering the following:
1) Apartment building in Atlanta area - positive cash flow (not much); however, we don't live in the area and latest analyst talking about Atlanta as a rental market stated that it was "a wild card"
2) Multiple single family homes (we're doing a 1031) in a rural part of Virginia, 2 hours from Washington DC. Negative cashflow, but we know the area well and are pretty confident that there will be appreciation (clearly not as high as it has been)
So - the question is: Would you invest for cash flow, even if it's small, or go for the appreciation and eat up the difference?
Thanks!