Comments on: Real Estate Investing: Do you watch the cash flow or chase appreication? http://www.thickenmywallet.com/blog/wp/2008/02/28/real-estate-investing-do-you-watch-the-cash-flow-or-chase-appreication/ Everything to do with thickening your wallet Wed, 01 Feb 2012 15:44:00 +0000 hourly 1 http://wordpress.org/?v=3.3 By: idris http://www.thickenmywallet.com/blog/wp/2008/02/28/real-estate-investing-do-you-watch-the-cash-flow-or-chase-appreication/comment-page-1/#comment-19371 idris Tue, 25 Aug 2009 19:56:50 +0000 http://www.thickenmywallet.com/blog/wp/2008/02/28/real-estate-investing-do-you-watch-the-cash-flow-or-chase-appreication/#comment-19371 In real estate, you benefit from owning more real estate, not from owning more of one piece of real estate. Leverage, used in combination with due diligence and a solid educational base, will allow you to accelerate the growth of your equity considerably. My rule of thumb - Pay of the mortgage if you are in "income" mode...Leverage if you are in "growth" mode... In real estate, you benefit from owning more real estate, not from owning more of one piece of real estate. Leverage, used in combination with due diligence and a solid educational base, will allow you to accelerate the growth of your equity considerably.

My rule of thumb – Pay of the mortgage if you are in “income” mode…Leverage if you are in “growth” mode…

]]> By: Nick http://www.thickenmywallet.com/blog/wp/2008/02/28/real-estate-investing-do-you-watch-the-cash-flow-or-chase-appreication/comment-page-1/#comment-7628 Nick Sat, 01 Mar 2008 02:51:30 +0000 http://www.thickenmywallet.com/blog/wp/2008/02/28/real-estate-investing-do-you-watch-the-cash-flow-or-chase-appreication/#comment-7628 I agree with MillionDollarJourney. Cash flow positive after all expenses is the most important criteria. In order to make that happen you need to invest in areas where rental prices have kept up with property value inflation. This doesn't tend to happen everywhere. A good way to tell if the market is overheated in an area is to look at the average rental prices in the area. This is a great way to determine the real value of a property/area. Halifax is a great place to invest in rental income as thre is a large student population that puts upward pressure on rental prices keeping them in line with property appreciation. I would think Waterloo/Cambridge/Kitchener would have similar advantage but maybe this is not so. I agree with MillionDollarJourney. Cash flow positive after all expenses is the most important criteria. In order to make that happen you need to invest in areas where rental prices have kept up with property value inflation. This doesn’t tend to happen everywhere. A good way to tell if the market is overheated in an area is to look at the average rental prices in the area. This is a great way to determine the real value of a property/area.

Halifax is a great place to invest in rental income as thre is a large student population that puts upward pressure on rental prices keeping them in line with property appreciation. I would think Waterloo/Cambridge/Kitchener would have similar advantage but maybe this is not so.

]]> By: FinancialJungle http://www.thickenmywallet.com/blog/wp/2008/02/28/real-estate-investing-do-you-watch-the-cash-flow-or-chase-appreication/comment-page-1/#comment-7609 FinancialJungle Fri, 29 Feb 2008 17:23:15 +0000 http://www.thickenmywallet.com/blog/wp/2008/02/28/real-estate-investing-do-you-watch-the-cash-flow-or-chase-appreication/#comment-7609 Interesting post. I'll send this to my friend who's contemplating about investing in Ontario. Interesting post. I’ll send this to my friend who’s contemplating about investing in Ontario.

]]> By: sundae1888 http://www.thickenmywallet.com/blog/wp/2008/02/28/real-estate-investing-do-you-watch-the-cash-flow-or-chase-appreication/comment-page-1/#comment-7589 sundae1888 Thu, 28 Feb 2008 18:50:15 +0000 http://www.thickenmywallet.com/blog/wp/2008/02/28/real-estate-investing-do-you-watch-the-cash-flow-or-chase-appreication/#comment-7589 Hubby and I went into this argument once, and it got rather heated. I was a firm proponent of maintaining positive cash flow, but he stood firm on appreciation. In the end, neither of us could convince the other, and we just left it as that. (Before you start worrying about my marriage, it was a philosophical exercise, as we occasionally do on other topics. We had no plans to invest in real estates beyond our primary residence in short- and middle-term. The funny part was, we did this in front of my in-laws and it got THEM a little worried.) Hubby and I went into this argument once, and it got rather heated. I was a firm proponent of maintaining positive cash flow, but he stood firm on appreciation. In the end, neither of us could convince the other, and we just left it as that.

(Before you start worrying about my marriage, it was a philosophical exercise, as we occasionally do on other topics. We had no plans to invest in real estates beyond our primary residence in short- and middle-term. The funny part was, we did this in front of my in-laws and it got THEM a little worried.)

]]> By: MillionDollarJourney http://www.thickenmywallet.com/blog/wp/2008/02/28/real-estate-investing-do-you-watch-the-cash-flow-or-chase-appreication/comment-page-1/#comment-7583 MillionDollarJourney Thu, 28 Feb 2008 12:41:50 +0000 http://www.thickenmywallet.com/blog/wp/2008/02/28/real-estate-investing-do-you-watch-the-cash-flow-or-chase-appreication/#comment-7583 When I look for rental property, I typically look for both. But perhaps the most important criteria for me is that the property needs to be cash flow positive after ALL expenses, including vacancy/maintenance. When I look for rental property, I typically look for both. But perhaps the most important criteria for me is that the property needs to be cash flow positive after ALL expenses, including vacancy/maintenance.

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