#94 Christina Suter: Education- Investing in Appreciating Markets & What Works

“It’s a gamble from my perspective of being a long term investor in positive cash flow properties. The market is defining itself based on those buyers, which is what I’m seeing because the price of multi units are buying and selling off of that.” -Christina Suter


Today I am continuing with last week’s show about appreciating markets and what works. Depending on your investing style and where you are investing, appreciating markets can be a great way to invest if you know when and how to do so. In appreciating markets, the land is worth more than the property meaning that it can be harder to get a positive price to rent ratio. In markets like Southern California, New York and San Francisco it can be hard to find properties as well as have a goal of positive cash flow for the first few years. What you are waiting for in appreciating markets is the yearly rent increases that will eventually over time, put you in a positive cash flow. There are strategies that many investors use in high appreciating markets that make these investments worth it. 


Topics Covered in this episode:

  • FRED housing charts
  • What are the different investment styles 
  • What is steady and slow appreciation 
  • Why land in appreciating markets is worth more 
  • Positive price to rent ratio 
  • What is principal and interest 
  • What is my 1% rule 
  • What are some issues for rentals in high appreciating markets
  • What are high draw cities 
  • Why flippers in appreciating makers can add sq footage to make a profit 
  • What happens with multi units in appreciating markets
  • Why you don’t want your cap rate less than your interest rate
  • Anticipating negative cash flow 
  • What is prop 13
  • What are capital improvements 
  • What are the 3 forms of appreciation 
  • Why the center of cities are more stable than surrounding locations 


Listen now and find out why Christina thinks education is the key to financial leadership on Spotify, iTunes and Youtube

The Real Estate Breakthrough Show with Christina Suter is where we talk about the reality of real estate, the mindset you need and the tips and tricks to get you moving forward in investing. Join us every week and learn everything you need to know to invest in real estate education and create real wealth for a lifetime.


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