Kevin makes a really good point about the need for the property to still be a fundamentally solid investment.
Twin growth and cashflow drivers are required for long term success and simply buying a property because it is cashflow positive without also having capacity for increases in value through economic, planning or fundamental reasons is not, in my opinion, a wise move. Clearly capacity to add value through renovation, subdivisions, developments are points worthy of consideration.
Being in WA we have access to a number of NW towns which are fundamentally solid and recent government, mining and supporting industry announcements mean we can achieve very attractive cashflow. Redevelopment opportuities mean we can well and truly add immediate value for clients.
The key is not to be one diminesional in any investment decisions. You need to consider the all of underlying fundamentals and cashflow. Not cashflow at the expense of the other.
I clearly remember the cashflow positive interest Steve's first book created.
While Steve identified his 11sec rule his first book also stressed the need for solid fundamentals. In their haste to pursue cf+ property many people failed to heed the second, less sexy, message about fundamentals.
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