For a beginner, we lean toward cash flow, or at least breakeven, over a pure appreciation bet. Our rule of thumb: want some positive cash flow unless there's a specific strategic reason not to. Call it the no-alligators principle: don't buy something that eats your cash every month. Investment purchases take real money down (Fannie Mae allows as little as 15% down on a single-unit rental purchase, and 25% down on two-to-four units), and if the property throws off nothing, your cash-on-cash return is basically zero while that capital might work harder somewhere else. Cash flow also teaches the fundamentals you need early: budgeting for repairs, handling turnover, dealing with tenants. Appreciation-first and short-term-rental plays carry more risk (local short-term-rental codes can change out from under you) and fit better once you have a few deals behind you. One honest caution on what "cash flow" really means. A property can look positive on paper, say a $3,200 payment against $3,850 in rent, and still land close to breakeven once you reserve for vacancy between tenants and turnover costs like cleaning and marketing. Underwrite those in from the start. None of this is absolute. There are legitimate reasons to buy a slightly negative property, and a strong location can more than earn its keep over a long hold as rents rise and the loan pays down. Each deal stands on its own numbers, so run them fully before you count on either the cash flow or the appreciation.