Invest For Appreciation DC Metro Or Cash Flow In Depressed Areas Like Atlanta
Hi All,
I have just been pondering on what to do with some cash i have (40K). Do I buy a property in DC metro for most likely negative cash flow but high probability of appreciating or do i buy a 2 or more properties in Atlanta where the appreciation is slow but can rent out for breakeven or positive cashflow with interest only loans and while using a Property management company.
You see the market in DC metro has appreciated alot, but the job market is strong. But what is worrisome is the rise in interest rates. I plan to flip after a yr or 2 and go to atlanta and invest more for cashflow.
Can anyone advise me. Not sure what to do. Or do I just leave my money in bank and avoid all these risks
Thanks
CI
ciroma,
Much of the answer depends on your circumstances. My general rule for me is that my total porfolio is break even or better (cash flow). My ultimate need is cash flow, but since I am working I am not currently depending on cash flow to live on. My belief is that when the appreciation markets cool down it may be a good time to buy into the cash flow strong areas where the property values are likely to hold. One strategy that I have used is to buy a strong cash flow property to help support a few other highly leveraged investments that appreciate well.
I hope that this is of some help.
Regards,
Ed
Thanks Ed, this helps. Will consider doing a mix of cash flow and Appreciation.
Apologize for the hijack and moved my query to a dedicated post.[ Edited by krish on Date 03/30/2005 ]
Krish - you just hi-jacked the post with your question. Might get better results with a seperate post.
sorry ciroma...i will write it so that it is not a web address....househunterswanteddotcom
I have been looking for affordable housing and affordable investments in the DC metro area. Have you thought about West Virginia Jefferson and Berkeley counties. Lots of new costruction deals to be had I see. It feels like a good area to get into right now with everything that is going on between the government and the developers waiting to get in and build. It is accessible on the weekend, not too far of a drive. Steady growth and lots of rental opps to probably be had for quite some time into the future. It is the next Loudon County of our area. [ Edited by yashica23 on Date 04/02/2005 ]
There is a company in Maitland, FL called Credit Data Services. Their telephone number is 866-237-1672, you can call them and see if you can setup an account then you can run credit reports online.
Jay
Thank you guys for your advice and ideas. I will look into this quickly since I have just received my first call about the property.
Roe
You can do alot with 110k even more than you are looking to get but you just have to be open to new things. You can go just about anywhere in the country with that kind of money and make a decent return.