If you are choosing between a high cash flow house hack and a high appreciation house hack, the right move is to decide which one your finances need first, then buy the property type that delivers it. In Central Iowa that usually means older multi-unit stock that puts more rent against the purchase price, or newer construction in a growing suburb where the monthly margin is thin and the bet is on long-term value. One property that does both at a high level is rare. A portfolio that does both over time is very doable.
I work both ends of the Ankeny-to-Ames corridor, and Ames versus Ankeny is the cleanest side-by-side I know for this decision.
A disclaimer first: the stock market and the real estate market are two different markets that move for different reasons. This is an analogy only.
Dividend stocks are bought for steady, predictable income rather than for big price gains. Growth stocks tend to put their profits back into the company instead of paying them out as dividends, so the return is aimed at a bigger price gain down the road. In my experience it is hard to find a growth stock that pays a high dividend, and just as hard to find a dividend stock that grows like a growth stock. That is why plenty of investors hold a mix of both.
House hacks sort the same way. A high cash flow property is the dividend stock: income now, slower growth in value. A high appreciation property is the growth stock: little income today, with more of the return waiting at the sale. The real question is where most of your return comes from, and when.
A cash flow house hack puts more rent against every dollar of purchase price. In practice that usually means older stock with more than one unit: two rent checks against one purchase price.
Ames has a lot of that stock. According to the Census Bureau's 2020-2024 American Community Survey, about 40% of Ames housing units were built before 1980, compared with about 19% in Ankeny. Buildings with two to four units make up 7.9% of Ames housing units versus 3.5% in Ankeny, and 57.9% of occupied homes in Ames are rented, against 28.7% in Ankeny.
The trade-off is the building itself. Older roofs, windows and mechanicals call for a bigger repair and capital reserve, and more units mean more leasing. Every applicant gets the same written criteria - income, credit, rental history, references - applied the same way. Budget for that honestly, and the monthly income gives you staying power while values do whatever they are going to do.
An appreciation house hack leans on growth: newer construction in a suburb that is adding population, where the price per rentable unit runs higher and the monthly margin after the mortgage is thin.
Ankeny is the Central Iowa example. The Census Bureau estimates Ankeny's population grew 14.3% between April 2020 and July 2025, to 77,833. Over the same stretch, Ames went from 66,437 to 68,220, about 2.7%. The housing stock reflects it: 41% of Ankeny housing units were built in 2010 or later, compared with about 20% in Ames. Newer construction generally means fewer big-ticket repairs early on, and the bet is that sustained demand lifts values over a long hold.
One honest caution: appreciation is a long-term thesis, not last year's number. Over the past year, the Ames metro actually grew faster. The FHFA House Price Index had the Ames metro up about 5.6% from the second quarter of 2025 to the second quarter of 2026, against about 2.3% for the Des Moines-West Des Moines metro, which includes Ankeny. I compared Ames with the rest of the metro in Ames is outrunning the rest of Central Iowa. Nobody can promise appreciation in either city, so I recommend an appreciation play only if you can comfortably carry it through a flat stretch.
Here is the example I use, updated to Central Iowa prices. It is illustrative only, not a forecast and not numbers from any real property. Assume the same price and the same financing on both, so the payment is identical; your lender sets the real terms.
Hold rent flat and add it up. Property A collects $60,000 in cash flow plus a $50,000 gain, about $110,000. Property B collects $12,000 plus a $100,000 gain, about $112,000. Nearly a tie, before selling costs and any tax on the sale. Taxes on a sale depend on your situation, so confirm yours with a CPA before you act.
The totals are close. The paydays are not. Property A pays you every month for ten years, money you can put toward reserves or the next house hack. Property B pays most of its return in one lump, only when you sell, and only if the market cooperates. At $100 a month, one vacancy or one water heater turns a year negative. That is the real decision: when you get paid, and how much certainty you need.
The good news: neither approach is better on its own. It depends on whether you want more income today or a bigger return when you sell. The bad news: a single property with both high cash flow and high appreciation is extremely hard to find, if it exists at all.
Divide median gross rent by the median value of owner-occupied homes and Ames lands at about 0.37% ($1,023 against $277,400), while Ankeny lands at about 0.40% ($1,319 against $331,000). The two cities look similar. The cash flow difference lives in the specific property you buy, which is why I never let a city label make the decision.
The way to get the best of both is the way stock investors do it: diversify. The sequence I recommend is to make your first two or three house hacks cash flow properties, and keep going until the income stream reaches a level you are comfortable with. Then shift toward properties with stronger appreciation potential. You end up with solid income now and a bigger overall return when you eventually sell, instead of a portfolio that is all one or all the other.
Start with your own situation: your reserves, your income, how long you plan to hold, and your tolerance for a month that runs negative. Then look at your price band, because Central Iowa does not behave like one market at every price, and entry-priced duplexes and small multi-unit properties sit in the lower bands. I broke down how supply differs by price in Central Iowa has three housing markets right now, not one.
What this means for your strategy: if this is your first house hack and your reserves are modest, I recommend leaning toward cash flow, because a property that carries itself protects you while you learn the landlord side. If you already have income coming in and a long runway, a newer property in a growth suburb can be the right second or third move. Either way, compare an older multi-unit option and a newer option at the same budget before you commit.
Run both versions side by side. The Deal Calculator lets you set rents, appreciation and hold period, then shows cash flow and a 10-year IRR for each, and how to analyze a rental property in Central Iowa covers the rent comps and expense stack that feed it. For the market-level view, see the Ankeny vs. Ames investor comparison.
For the full strategy, start with the house hacking playbook. And if you want a second set of eyes on a specific property in Ames, Ankeny or anywhere in between, reach out. I am happy to run the numbers with you, no pressure.
Jackson Krile | Flanders Team | RE/MAX Real Estate Center
515.490.8614 · Jackson@FlandersTeam.com
Let's talk through your specific situation - no pressure.