There are two parts to any investment – cash flow and equity appreciation. Cash flow refers to how much money the investment generates and equity appreciation is how much the investment itself grows in value. When you look at real estate, cash flow refers to any rents you can earn and equity appreciation refers to any increase, or decrease, in the property’s value.
In the last few years, real estate has taken a huge hit because prices simply grew too quickly, financially incapable people were given loans they couldn’t afford, and the myth that “buying…
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Anecdotes, Brokerage, Buying A Home, Cash Flow, Diversification, Home Values, Hook, How Much Money, Investing In Real Estate, Mutual Fund, Myth, Nest Egg, Rents, Retirement, Vanguard Account, Whack
