Cash or Cash Flow?

[Adam Pierce]

Hi BP,

Adam here and I just had a quick question about what a new investor should focus on. 

I'm currently torn between whether to invest for more cash (via flips, wholesaling and selling homes on the MLS) or to put the money towards a small cash flowing property.

To add more detail; I don't have a whole lot of cash (saved only $6500). I currently set aside $600 per month. 

My goal is to get enough cash flow to leave my current job and to start making RE investing my career. 

Anyways your thoughts on the matter will be greatly appreciated. Thanks and I look forward to your responses!!

[Steve Vaughan]

Earning income at high marginal tax rates will keep one seeking deals and working forever. 

Passive income will keep the tax man away and give you freedom.

A lot of folks wholesale, flip and sell as a means to obtain a passive income portfolio down the road.

$6500 is a good start and saving $600/mo is great, but I would generate my war chest of cash up a bit before sinking everything into a rental property.

Good question and good luck @Adam Pierce!