Posted by Gene on January 30, 2005 at 18:44:41:
Well its all about weighing the potential up-side and down-side related to each.
Cashflow and limited risk is a great thing. Chasing appreciation can be very lucrative but is much more risky.
I have made much more money from appreciation than I have in rental cash flow. But this was from buying in areas that were at the bottom and going up. Buying in Florida right now is definitly not buing at the bottom. And the fact that it has seen amazing appreciation over the last few years tells me that it might not be sustainable.
I would spend a good amount of time and energy studying the particular markets your intrested in and then weigh the plusses and minuses of each.
Good luck.
Gene