Cash Flow vs. Appreciation
The merits of a particular investment property typically fall somewhere on the scale between high cash flow and high appreciation potential. For the real estate investor, it's important to know what the goal of ownership is because different types of property offer differing advantages. We can help you calculate expected risks and returns based on cumulative market data to help you focus on the right type of investment for your goals.
For example, an ocean view condo most certainly will not rent for enough to cover the cost of ownership, but may offer other benefits that justify monthly losses such as high appreciation potential or being an option as a future retirement property. By comparison, a ten unit building in a high density residential part of Orange County may offer great cash flow, but at the expense of greater management headache with no future benefit such as a nice retirement home.
Contact us to schedule an investment consultation so that we can help you decide if investing in residential real estate is right for you.