If it does not increase in value, you miss out on a great way to build wealth through real estate – capital appreciation. Keep in mind that while prices are rising, that’s the time to get your finances in order.
If you purchased the property with a modest cashflow at the beginning, you have the potential to double your cash flow quickly.For example, if the monthly rent is $1,000 and the cash flow is $200, a 20% increase in rent would double the property’s cash flow.
Relying solely on appreciation and not cash flow can change a solid real estate investment strategy into speculation. It is essential to focus on a mix of growth and cash flow in an investment property.