Do all moving object appear contracted?

In the derivation of Lorentz contraction my prof considered a rod moving away from you with speed $v$. In this case the rod appears shrunk by a factor gamma.
But now let's consider a rod moving towards you. Light from farther end leaves before it does from the closer end; for the measurement to be simultaneous in your frame. Thus rod's length in your frame appears to be greater than proper length. In that case how does the formula L = L0 sqrt(1- (v/c)2) hold.