The Forgotten Benefit of Real Estate Investment
With housing prices skyrocketing as they currently are, it’s understandable that most real estate investors are fixated on price appreciation as the benefit real estate investment has that far and away exceeds any other.
If another benefit competes with price appreciation in the minds of most investors, it’s cashflow. Indeed, many new investors (as well as many self-anointed “gurus”) like to talk about getting to $2,000 or $3,000 or $5,000 or $10,000 a month in positive, passive cashflow.
“Just sit back and collect checks!” They say.
Both of these things are advantages of real estate, of course, but the price appreciation we are seeing now is an aberration and cashflow should only be seen as the cherry on top.
Historically speaking, house appreciation has been just…