Real estate agents thrive on finding the perfect properties for their clients. If you’re working with an investor, a good recommendation could lead to more business in the future and more recommendations to their peers. But investors use a different set of criteria when looking for a property than their homebuying counterparts. Rather than thinking about their family’s needs, the location’s proximity to work and aesthetic choices, property investors want to make a profit. The problem is, there are two major ways to make a profit in investing, and each requires a fundamentally different kind of search. Cash flow vs. appreciation Cash flow and appreciation represent two different investing styles. In cash flow, the goal is to buy a property that maximizes your monthly earning potential by giving you the lowest monthly costs and the highest monthly rent as income. In appreciation, the goal is to buy a home with the highest-valued growth curve, targeting properties that…
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