Cash Flow vs. Appreciation: Which is Recession Resistant?

Cash flow vs. appreciation—the modern-day real estate investor’s great debate. Or so it was a couple of years ago. After the 2020 and beyond run-up in real estate appreciation, cash flow is getting harder and harder to find. If you can capture it at all, you may only be taking home a hundred dollars or so in true cash flow each month. But, with the mass appreciation we’ve seen, is there any equity left in the market?

As a new investor, you’re probably asking yourself which market is the best for your goals. Cash flow markets like the Midwest have lower entry points but appreciation markets like Miami, Austin, and Denver may seem too attractive (and stable) to pass up. So what do you do? Before you make a decision, hear out Anson Young—veteran real estate investor and agent. He knows the differences between cash flow and equity plays and can describe easily how they’ll fit into your investing strategy.

Are you a cash flow or appreciation investor? Why did you choose to go with the strategy you did, or are you combining both like Anson talks about in the video? Let us know in the comments below!

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Join BiggerPockets for FREE 👇
https://www.biggerpockets.com/signup?utm_source=youtube&utm_medium=description&utm_campaign=none
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Grab Anson’s Book, “Finding and Funding Great Deals”:
https://store.biggerpockets.com/products/finding-and-funding-great-deals?utm_source=youtube&utm_medium=description&utm_campaign=none
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Check out Last Week’s Episode on Buying Real Estate in 2022:
https://youtu.be/gP6-aYfHu54
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Cash Flow vs. Appreciation—What Experienced Investors Know That You Don’t:
https://www.biggerpockets.com/blog/2015-07-21-whataes-important-aecf-appreciation?utm_source=youtube&utm_medium=description&utm_campaign=none
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Is It Wise to Invest in Real Estate for (Nothing but) Appreciation?
https://www.biggerpockets.com/blog/investing-real-estate-appreciation-only?utm_source=youtube&utm_medium=description&utm_campaign=none
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The Cash Flow Market “Mirage” That Traps New Investors:
https://www.biggerpockets.com/blog/real-estate-591?utm_source=youtube&utm_medium=description&utm_campaign=none
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Connect with Anson on BiggerPockets:
https://www.biggerpockets.com/users/anson?utm_source=youtube&utm_medium=description&utm_campaign=none
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Follow Anson on Instagram:
@younganson or https://www.instagram.com/younganson/

00:00 Cash Flow vs. Appreciation
01:32 Cash Flow and Appreciation Explained
03:19 Pros and Cons of Appreciation
06:34 Pros and Cons of Cash Flow
09:27 Which One Wins in 2022?