Dan Lane of The Rental Income Podcast interviewed MoveIn.Space founder Josh Rosenthal about buying [residential real estate] rentals for appreciation and not cash flow. This strategy is required in areas with high home prices, where monthly rent can not possibly follow the 1% Rule or the 2% Rule.
Excerpt from the Rental Income Podcast
Josh talks about his long-term investing strategy and renting out your backyard separately from the house.
. . . this style of investment has the same inherent renter risks as doing the cash flow strategy.
I’ve had tenants that have tried to skip out on rent. They’ve abandoned the property. They’ve destroyed the property.
You need to have the ability to wait and even sometimes lose money each month.