Our Smoky Mountain Cabin

Cash flow, Market Appreciation, or Forced Appreciation?

People say real estate investing is a game of numbers. Some say it’s a game of chances. Many claim it’s risky. Others state it’s the sure FIRE way to build wealth. See what I did there?

You might be asking, But what path leads to actually gaining wealth?

First, you need to understand what your goals are. You cannot understand which path to take if your are unsure of where you want to be. To answer that question honestly…looks like this…

You want ALL of those paths.

The laziest path to take is market appreciation. It’s also the most common. Your property gains in value over time. Some markets gain quicker than others.

Cash flow is the most desired path for all to pursue, but many fail to acknowledge the sweat equity that goes into a net positive cash flowing property. Cash flow is most synonymously paired with the FIRE movement or those wishing to supplement their corporate income to eventually retire early.

Forced Appreciation is literally where the Chip & Joanna Gaines concept was born. “Buy the worst House in the best neighborhood” type of investment. Forced appreciation allows you to buy a distressed property, rehab it, then find rapid value in appreciation from renovations.

A true real estate investor seeks out all possible situations above, but a successful investor finds properties capable of all 3 combined into 1.

Which path interests you the most?

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