How Real Estate Investing Builds Wealth (Cash Flow vs. Appreciation)

Cashflow versus appreciation. The biggest rivalry in real-estate investing.

So what’s more important, cashflow or appreciation? Today we’re taking a hard, nerdy look at appreciation to understand how it impacts our portfolios. We’re going to crunch real numbers and answer the big questions: is appreciation real? Should we include appreciation in our underwriting? And the big question: should we invest for appreciation or cashflow?

I’m Jon Schwartz, and those are the questions we’re answering today on Investment Property Nerd.

You can download the FHFA Home Price Index graphs from this video and 356 other major metros here: https://fred.stlouisfed.org/categories/32261