Do “Cash Flow Markets” Really Make You Rich?

On The Market

BiggerPockets

News, Education, Business, Investing

4.8 • 858 Ratings

🗓️ 18 August 2025

⏱️ 36 minutes

🔗️ Recording | iTunes | RSS

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Summary

Is chasing hot markets like Austin and Nashville actually hurting your long-term wealth building? In this episode, Dave Meyer and Kathy Fettke dive deep into a heated BiggerPockets forums debate about whether low-appreciation, high-cashflow markets like Cleveland and Memphis can grow your net worth faster than trendy appreciation markets. They reveal why the "slow and steady" approach might not be the wealth-building winner you think it is, sharing real examples from Kathy's 30 years of investing across both market types. Dave and Kathy discuss the hidden costs of cashflow markets, why timing matters more than market type, and how to find the perfect hybrid markets that offer both appreciation potential and solid returns in today's challenging housing market conditions. Links from the Show Join the Future of Real Estate Investing with Fundrise Join BiggerPockets for FREE Find an Investor-Friendly Agent in Your Area Find Investor-Friendly Lenders Property Manager Finder Dave's BiggerPockets Profile Kathy's BiggerPockets Profile Check out more resources from this show on ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠BiggerPockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ and ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.biggerpockets.com/blog/on-the-market-348⁠⁠⁠⁠ Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠advertise@biggerpockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Austin, Phoenix, Nashville, Tampa. These are the hot markets we've heard so much about over
0:06.6	the last couple of years. Prices, they shot up rapidly, and some investors, with the right
0:11.7	timing, got incredible deals. But as the housing market has shifted, some of the property
0:16.6	values we saw previously don't look as good today. Meanwhile, less flashy markets in the
0:22.8	Northeast and Midwest have provided more modest appreciation, but arguably stronger total returns.
0:29.4	So today we're breaking down these dynamics. Is FOMO sometimes a good thing? Or is slow and steady
0:35.1	the route to long-term wealth.
0:37.8	This is on the market.
0:39.0	Let's get started.
0:44.0	Hey everyone, I'm Dave Meyer, joined by Kathy Fecki, who has invested in many different markets,
0:50.4	some trendy and some not.
0:52.6	Kathy, how are you doing?
0:53.8	I'm doing great, and this is one of my favorite topics.
0:56.8	This is going to be a great show.
0:58.2	This episode, just to give people some context,
1:00.8	was inspired by a post on the Bigger Pockets forums
1:04.1	that has generated more than 200 replies.
1:06.8	So this has been a very hot topic on the BP forums.
1:10.4	It was posted by an investor in Indianapolis named Mike D.
1:15.0	And the title of the post is, quote, why markets with low appreciation grow your net worth twice as fast.
1:23.0	And Mike's basic argument is that properties in quickly appreciate markets like Austin or Nashville
1:28.7	usually have lower cash flow and lower return on equity than steadier markets like Cleveland or Memphis.
	...

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