How to Combine Cash Flow AND Appreciation When Buying Rentals

Cash flow and appreciation are at opposite ends of the investing spectrum. One will fuel your current lifestyle while the other will slowly, silently build your long-term wealth. The cash flow vs. appreciation debate has gotten even stronger this year as home prices continue to rise and cash flow prospects dwindle in formerly stable markets. Is there a way to still get the benefits of long-term growth while also taking home a sizeable rent check?

If there’s one man to ask, it’s your host, David Greene, who’s joining us for another episode of Seeing Greene. David knows a thing or two about buying for different purposes, in different market conditions, with different exit strategies. He’s not only asked about how to do this on today’s episode, he’s also asked questions like who should be on the mortgage when buying a rental with a partner, whether to sell or refi a rental, what to do when your DTI (debt-to-income) ratio is too high, dealing with difficult sellers, and how to get comfortable with being uncomfortable.

Want to ask David a question? If so, submit your question here so David can answer it on the next episode of Seeing Greene. Hop on the BiggerPockets forums and ask other investors their take, or follow David on Instagram to see when he’s going live so you can hop on a live Q&A and get your question answered on the spot!

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How to Use a HELOC to Buy Real

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How to Embrace the Uncertainty of Change & Make Your First

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Cash Flow vs. Appreciation—What Experienced Investors Know That You

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Show notes at:

00:00 Intro

01:35 Quick Tip

02:19 Who Should Be On The Loan?

06:53 Cash Flow vs. Appreciation Markets

12:19 Sell or Refi a Rental?

17:30 Questions from The Comment Section

22:00 How to Get Loans with High DTI

26:39 How to Convince a Seller on Your Offer

28:59 HELOC vs. Cash for Down Payment?

31:56 LTV (Loan-to-Value) Clauses

34:13 Getting Comfortable with Taking Risks

37:09 Ask David Your Question!

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