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Specifically, Cash Flowing Investments vs. Speculating Investments in Real Estate

During a time in history where experts, media, homeowners, and investors all have different ideas as to what the next few years will bring in terms of value, recession, and appreciation, it makes sense to take a deep dive into what type of investing is a solid business move in any shifting market.

Cash-Flowing Real Estate Investments

Cash flow is a result of proceeds from rental payments. No matter what the market contains, if a property is producing enough residual income after the debt service on the property is paid- it’s always a good time to purchase that property. You will not only be producing residual income but the debt will be getting paid down over time by the tenants. If for some reason the market does depreciate the likely historic correlation is an increase in residential rental prices.

Speculating Investments

Speculating is investing with the intent to make a quick profit during market fluctuations. Over the past few years, many people made a profit in real estate this way. Over time, the value of real estate increases. However, if you are planning to invest in today’s real estate market, we want to ensure that the property is cash-flowing. It’s ideal to set your intention to hold a property for 7-8 years for a more guaranteed profit due to increased value.

Next Steps to Investing

If you’re thinking about investing but want to know more, let’s chat! I’d love to help you on your journey.

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