The proverbial question in property…Cash flow or (potential) price appreciation. I went for a long walk this morning with my wife. 6 miles plus. During this time we both listened to a podcast. It was regarding a lady in Ft Lauderdale Florida who built 22 LHA houses in Ohio. She explained what she went through in order to build the portfolio. The big take away and we are in agreement is CASH FLOW. We are providing social housing in some of the poorest regions of the country. We are providing nice quality properties that we are ourselves would live in. All the while we are generating very high returns on investment. These are not luxury housing however when we have social housing contracts for 5 and 10 years…with guaranteed rents…no voids…no maintenance we are able to focus on building our portfolio…plus in order to lower leverage we will properties. Kevin Green suggests selling at least one out of every three properties. We feel that is very sound advice and adhere to the same. There is no real right answer as no one knows the future. Who would have thought prices would shoot up in London in 2003 or now subside. Or in our example and we missed prices virtually doubling in Salford Manchester from 2014. Personally we like buying properties below 2008 prices …having them cash flow…putting in social tenants and growing our portfolio.
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