112: Rookie Reply: Should You Invest in an Expensive Real Estate Market?
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This week’s question comes from **Scott **(@hotdads1) through Tony’s direct messages on Instagram)! Scott is asking: How are expensive properties) profitable? Is it a mindset shift to buy expensive properties, or should I look in cheaper areas? **Should I purchase in a quickly appreciating market)? **

This is a very 2021-type question. We’ve seen numerous markets around the United States (and the world) see massive appreciation over the past year and a half. Now, real estate investors wonder if it’s even worth pursuing deals on the market. Although prices may be higher than they were before), you still have numerous options when trying to purchase a profitable rental property.

Here are some suggestions:

Price becomes irrelevant when looking at cash on cash return) and** true cash flow**

Look at creative financing)** solutions** (like FHA loans) to close on a home with low money down

Calculate your numbers for the long term) to get rid of any short-term price dropping fears

Stop looking at past prices and ask: “Is it a good deal today?”

And more in the episode…

If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group)! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).

Links from the Show

Real Estate Rookie Rookie Facebook Group)

Real Estate Rookie Youtube Channel)

Scot Morris's Instagram)

Rookie Podcast 109: From Sleeping in His Car to Multi-Unit Landlord & The “Nomad” Strategy)

Check the full show notes here: https://biggerpockets.com/rookie112

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