BiggerPockets I get that you’re saying location, but where do you invest then? I live in Cali and the market is too expensive here, so where would I invest in at then?
I'm liking and commenting because I'm going to buy in the (kinda) gah-het-oh initially because that's all I can afford right now. Then over time, I'll play Monopoly and trade in for nice digs in the good school districts.
This is one of your best videos. We see UA-camrs bragging about owning 15 doors, 30 doors etc. but we never see how much cash goes into maintenance and repairs of those places. You only hear about money that comes in not what goes out. You certainly never hear about appreciation because those dumps never appreciate.
Great points guys. Appreciation is wealth building while cash flow will get you out of the daily grind. With negative cash flow, it all depends how much you can afford to finance out of pocket and how it will impact your lifestyle
It is tough to find a value in a great location but I have seen people build beautiful houses in a terrible area and then come to me as a realtor and they want me to price it like it is in a good location. Location is #1 for sure
Over the years Ive decided that cash flow just helps you hang on to the property while it appreciates. Buy for cash flow during a recession, and then hang on until the next bubble.
Cash Flow is more important than Capital or Capital growth. I learned that the very hard way in 2008! I am with Brandon. Location Location Location is BS. ROI is King!
learned that in 2008? if u were going by appretiation your talkin long term and not selling a lot at all the market will always have its crashes but especially with real estate its always going up in the long term and a couple year crash will not affect you what so ever if your main focus is appretiation (holding stuff for a long time)
Colin Brazendale I can spend cashflow. Try booking a vacation with appreciation 😉😉😉. However, I let the cashflow train drive the deal and appreciation is the cream on top.
Yep, location, location and location and that is what gets you wealth--go big or go home which is different from a safe perspective of positive cash flowing. Almost all major cities in California yields negative cash flow even if your downpayment is 30% or higher, however, the appreciation is INSANE in here especially in the Bay Area. For example, a 800k house in 2018 is now worth 1.6M in 2024, yes it DOUBLES in 6 years with $800,000 capital gain and yes during the crazy high interest rate 7% period too! Even if you don't have renter which is unrealistically stupid to do, you still come out on top beating any positive cash flow rental in any Midwest or the likes.
Very fitting video to throw up this evening as I've been hesitant to throw an offer down on a property that needs some work but is in a fantastic location (for my first investment)!
hey I was wondering if anyone has done geothermal energy? is it worth doing it, like I heard it cost 25/50k$ but reduces heating by 50/80% per year, do you think it would be worth it?
@BiggerPockets, that link to episode 336 in the description leads to [hashtag 336] search results rather than a single podcast. I'm confused. Thanks for posting this, BTW.
Not ! cash flow cost you so much pain ! Get up 5am to shovel snow , mow grass in summer , evict tenants all the time etc.. Cash flow is not king , Appreciation leads you to wealth ! Cashflow gives freedom , Appreciation makes you rich .
@@Da_Pallet_Dude Property manager for what? Learn to handle stuff ! U wanna be sitting waiting just for the money? Get a million net worth then talk about property manager . Reduce your expenses , do it yourself . Propery manager is gonna take 30% of the rent every month ! Think about that .
I disagree big time. The smart investor invests for cashflow. When do we ever think of cashing our networrh to live on it? It's always cashflow that keeps our lifestyles afloat. Moreover, If in invest in higher cashflow and u invest in higher promise of capital gains, I'll out perform u by qualifying for higher loans with banks than you would. This difference compounded over the long run will out perform your capital gains.
It doesn't have to be one or the other. Pick good neighborhoods with good school districts that cash flow and also have high appreciation. I did that and got out of the rat race and increased my net worth in the millions. Find that beater house in a good neighborhoods!
10 to 20 years though. The issue with that is is time some people want to invest so they can retire early. That's good maybe for a younger person in their early 20s but not someone who's older or will be older. Yeah got all this money but I'm too old to do anything with it. Kind of pointless.
I think it depends on the type of property. Large commercial properties you’re buying for both as appreciation is a function of cash flow. In SFRs both, but primarily cash flow as I don’t want to cover mortgages but as a long term buy and hold invested the trifecta is cashflow (roll into other deals), appreciation and equity build by mortgage pay down. I don’t think it’s really an either or proposition.
Depends how much you make from your primary job. My wife and me were saving ~8k a month before we got a rental which we have to subsidize with 2k a month. (1 million dollar property in Sorrento valley, 3 miles from the beach,). Not the end of the world.... especially knowing that the property is bound to appreciate at least 3% a year in future.
![Calculating Numbers on a Rental Property [Using The Four Square Method!]](http://i.ytimg.com/vi/T_7vhsSBi7c/mqdefault.jpg)
LIKE for Appreciation
COMMENT for Cash Flow
Do you agree? Let us know why or why not!
BiggerPockets I get that you’re saying location, but where do you invest then? I live in Cali and the market is too expensive here, so where would I invest in at then?
@@Joe-sn3ms Location is not limited to the most expensive markets, it could simply be the best locations (neighborhoods) in any market.
Tease! Great advert/excerpt I love that one liner too! Killed it!
I'm liking and commenting because I'm going to buy in the (kinda) gah-het-oh initially because that's all I can afford right now. Then over time, I'll play Monopoly and trade in for nice digs in the good school districts.
@@evadees5833 get those Hotels!
As Ben Mallah would say.. buy the crappiest house in the best neighborhood. - You can fix a house but you can't fix the neighborhood.
Jordan Theisen I’m so happy I see a Ben reference! He’s right though!
Ben Mallah =🐐
Robert Kiyosaki has ALWAYS said that too... I agree with your post 💯💯💯🖖🏿🖖🏿
This is one of your best videos. We see UA-camrs bragging about owning 15 doors, 30 doors etc. but we never see how much cash goes into maintenance and repairs of those places. You only hear about money that comes in not what goes out. You certainly never hear about appreciation because those dumps never appreciate.
This is the first I'm hearing of cash flow vs wealth. Very impactful information fellas, thank you!
Great points guys. Appreciation is wealth building while cash flow will get you out of the daily grind. With negative cash flow, it all depends how much you can afford to finance out of pocket and how it will impact your lifestyle
T&R Wealth Strategies Inc. duh. It’s a rich people strategy. I’m glad he clarified it’s not a starting out strategy
*Cash flow is not king!*
This negative cash flow is starting to become common in the Seattle area as well. The numbers still make sense though!
Pierce county is cashflowing
I’m from Seattle and I’m buying homes that don’t even make sense for cash flow but LOCATION LOCATION LOCATION IS KEY!!!
Agree! All those telling cash flow is king will end in the hospital sick for working so much, the return is not worth it .
Appreciation is best !
Location is the key. Just like ads.
It is tough to find a value in a great location but I have seen people build beautiful houses in a terrible area and then come to me as a realtor and they want me to price it like it is in a good location. Location is #1 for sure
RC Wolhar I’ve seen this a lot too. Trying to avoid expensive properties in cheap neighborhoods. Trying to flip that!
I always look for Investment property that will cash flow.
Over the years Ive decided that cash flow just helps you hang on to the property while it appreciates. Buy for cash flow during a recession, and then hang on until the next bubble.
Cash Flow is more important than Capital or Capital growth. I learned that the very hard way in 2008! I am with Brandon. Location Location Location is BS. ROI is King!
learned that in 2008? if u were going by appretiation your talkin long term and not selling a lot at all the market will always have its crashes but especially with real estate its always going up in the long term and a couple year crash will not affect you what so ever if your main focus is appretiation (holding stuff for a long time)
I invest for cash flow. Appreciation is not guaranteed. If the property appreciates that’s more Gravy.
@@SmithFam2323 Agree 100%
ROI applies to both.
Colin Brazendale I can spend cashflow. Try booking a vacation with appreciation 😉😉😉. However, I let the cashflow train drive the deal and appreciation is the cream on top.
This is the video that inspired me to purchase my first rental. Love it!
Yep, location, location and location and that is what gets you wealth--go big or go home which is different from a safe perspective of positive cash flowing. Almost all major cities in California yields negative cash flow even if your downpayment is 30% or higher, however, the appreciation is INSANE in here especially in the Bay Area. For example, a 800k house in 2018 is now worth 1.6M in 2024, yes it DOUBLES in 6 years with $800,000 capital gain and yes during the crazy high interest rate 7% period too! Even if you don't have renter which is unrealistically stupid to do, you still come out on top beating any positive cash flow rental in any Midwest or the likes.
@BiggerPockets Thanks for this recommendation! It’s a new perspective I haven’t thought much about.
Very fitting video to throw up this evening as I've been hesitant to throw an offer down on a property that needs some work but is in a fantastic location (for my first investment)!
Thomas Lynch sounds like a good find to me!
hey I was wondering if anyone has done geothermal energy? is it worth doing it, like I heard it cost 25/50k$ but reduces heating by 50/80% per year, do you think it would be worth it?
@@albundy3929 why? If the project returns 8% in decreases bills, would it not be worth it? A guaranteed 8%, 0 risk
1:16
1:26 Cashflow gives you freedom, Appreciation gives you wealth
1:50
@BiggerPockets, that link to episode 336 in the description leads to [hashtag 336] search results rather than a single podcast. I'm confused. Thanks for posting this, BTW.
Man!!!! I’m stoked, looking forward to this episode!!! Great Teaser!
How do i know if lancaster california is a cash flow area?
I seek both !!!
I think investors make the mistake when it comes to appreciation vs. speculation. Sometimes it’s hard to know which is which.
Dude Real Estate and past returns aren’t indicative of future returns
@@DanielIles Exactly!
When you buy a rental in northwest San Diego, it becomes much easier to distinguish the two
In a market like Austin TX, right now appreciation is king
MeetKevin would be proud
Great , Thank you !
Well said David
Do us all a favor and drop this episode now instead of next Thursday haha
Great video and a lot of good real estate vocabulary. 😊
Do pro members have access to the podcast early or do we still have to wait til the 27th
Nice cliffhanger.. well played!
Nice clip from the show guys! Love the setup!
its a good clip..i prefer value add real estate! Check out my first vid military please!
Thanks! Hoping to make this the official set up! What do you guys think?
@@biggerpockets I like in person interviews...they flow so much better. This is exciting!
@@Frommilitarytomillionaire When are you coming back on the show ;)?
@@biggerpockets hahaha Ill be set up to record again in a month (moving) after that, just let me know!
this video is gold
How can I buy properties in the best locations if I have no money ?
Thanks for the lessons 🌟👍
Love it!
I think you may have accidentally written”matter’s” with an apostrophe instead of ”matters”, awesome podcast though
Great vid. Thanks 👍🎯
side bar that ending theme song is fire. what was that?
Cash flow is king 😊
Not ! cash flow cost you so much pain ! Get up 5am to shovel snow , mow grass in summer , evict tenants all the time etc..
Cash flow is not king , Appreciation leads you to wealth !
Cashflow gives freedom , Appreciation makes you rich .
Greatdreams get a property manager ;)
@@Da_Pallet_Dude Property manager for what? Learn to handle stuff ! U wanna be sitting waiting just for the money? Get a million net worth then talk about property manager .
Reduce your expenses , do it yourself .
Propery manager is gonna take 30% of the rent every month ! Think about that .
Greatdreams I’m not going to argue. Whatever fits your investing strategy do it
Greatdreams 30%?? Where do you live that they charge that?
Great Points!
I disagree big time. The smart investor invests for cashflow. When do we ever think of cashing our networrh to live on it? It's always cashflow that keeps our lifestyles afloat. Moreover, If in invest in higher cashflow and u invest in higher promise of capital gains, I'll out perform u by qualifying for higher loans with banks than you would. This difference compounded over the long run will out perform your capital gains.
It doesn't have to be one or the other. Pick good neighborhoods with good school districts that cash flow and also have high appreciation. I did that and got out of the rat race and increased my net worth in the millions. Find that beater house in a good neighborhoods!
This video is it.
10 to 20 years though. The issue with that is is time some people want to invest so they can retire early. That's good maybe for a younger person in their early 20s but not someone who's older or will be older. Yeah got all this money but I'm too old to do anything with it. Kind of pointless.
Gentrification is more profitable
nah, cash flow is king
I think it depends on the type of property. Large commercial properties you’re buying for both as appreciation is a function of cash flow.
In SFRs both, but primarily cash flow as I don’t want to cover mortgages but as a long term buy and hold invested the trifecta is cashflow (roll into other deals), appreciation and equity build by mortgage pay down. I don’t think it’s really an either or proposition.
No cash flow no deal regardless of the location
Depends how much you make from your primary job. My wife and me were saving ~8k a month before we got a rental which we have to subsidize with 2k a month. (1 million dollar property in Sorrento valley, 3 miles from the beach,). Not the end of the world.... especially knowing that the property is bound to appreciate at least 3% a year in future.
Location is important...but my #1 is VALUE ADD real estate..Check out my first Vid to see what I did..
Appreciation is hypothetical