Posted by Doug Pretorius on September 21, 2003 at 21:37:21:
You said you’re a cashflow investor and you also mention appreciation, so I assume you’re a landlord?
If cashflow is more important to you than appreciation, I highly recommend selling your properties with some form of owner financing.
Every market is different so you’ll need to explore what your market will bear. In mine I can comfortably get 20-30% above market rent for owner financing, which works out to about 3.5-4% higher interest than my underlying loan. That makes 100% financed deals cashflow without a problem, considering you also pass on much or all of your maintenance costs.