Cash Flow v/s equity

[Raja Polineni]

Hello Everyone,

Thank you for your time!

My wife and I have decent jobs and are not in need of immediate cash flow from our rental properties. We formulated a strategy to start purchasing rental properties in 2022 with a goal of purchasing enough properties to retire in 10years.

With that strategy, we have purchased three condos in 2022. We have a goal to purchase three more in 2023. From the properties we purchased in 2022, we have a positive cash flow (NOI) of $425. I know it doesn't tick all the traditional calculations for rental properties but our strategy is to scale up our portfolio looking at the equity instead of huge cash flow. All the properties we are purchasing have 15yrs fixed rate loan terms.

My question: Is this a good strategy? I am looking to scale up as fast as we can within our means but not particularly looking for excessive cash flow.

Any thoughts from seasoned investors is much appreciated!

Regards