Equity is a problem?

[Jared Ebert]

A couple random questions. I’m a complete beginner. I just listened to the podcast with “Swanny” who started with condos and upgraded to multi family through 1031 exchange. Several times he talks about how cash flow is “tax deferred”. I don’t understand this. You’re RE income is taxed like earned income, right?

He also seems very concerned about having “too much” equity homes which is part of why he sold his condos and traded up to the apartment buildings. Why is equity a problem? Is it as simple as that money tied up in equity is not making you money buying other properties? Thanks.