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Multifamily Minute Reader Reflections: Cash Flow vs. Appreciation
We asked our 44,738 Multifamily Minute subscribers which they prioritize more in their apartment building investments. Here's what they said.
Start Your Application and Unlock the Power of Choice$5.6M offered by a Bank$1.2M offered by a Bank$2M offered by an Agency$1.4M offered by a Credit UnionClick Here to Get Quotes!Apartment buildings are great investments for many reasons, which I've exhaustively discussed in the past.
Last week, I asked our Multifamily Minute subscribers to tell me what aspect of a multifamily investment is the most important to them: Cash flows from rent payments or property appreciation. Read on to learn what they said.
Survey Results
The results of last week's survey are below:
Investment priority | Percent of respondents |
|---|---|
Cash flow is king. | 7% |
Property appreciation potential is my focus. | 6% |
I target a balance of both. | 86% |
Neither; I have different priorities. | 0% |
I'm still figuring it out. | 1% |
Maybe I shouldn't have included a "both" option on this survey. 😅
Still, the results are loud and clear: It's really not about having one or the other, but having a mix of both that makes sense to you as an investor.
Besides, a property generating decent cash flow generally will also typically appreciate over time, and vice-versa. It's critical to have both elements in a property investment, though, because there may come a time (ahem) when operating costs will rise so much, so fast, that you can no longer rely solely on the cash flow aspect to keep your investments in the black.
Of course, the best way to reap the benefits of both strong cash flows is by
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Our Previous Survey
A couple weeks ago, I asked you about the best ways to improve resident retention in your portfolio. We had a great mix of results — check them out here.