V12 Bat

The difference between two real estate investment strategies. What it boils down to is how long you’re looking to wait and what is your primary motive for investing in real estate. If you’re looking to have more control over the investments you make I suggest to go for cash flow. Cash flow investment strategy allows you to reduce the risk of market fluctuations and real estate price drops. You have a more or less predictable monthly income which stabilizes your cap rate and sort of gives you a guaranteed number before you go into a deal. That is because you know how tenants are paying for your property before you purchase it so that number is more or less fixed. Secondly if the tenant were to move you could still get tenants at the market rate which should be similar to what the previous tenant were paying. The expenses should also be pretty deterministic before you go into a deal. If the property doesn’t suffer from major problems like foundational issues or needing a new roof, etc. then you can be more ass