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Updated 2 months ago on . Most recent reply
![Devin James's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/1236944/1700592431-avatar-dj_vsflorida.jpg?twic=v1/output=image/crop=3074x3074@739x0/cover=128x128&v=2)
Cash Flow vs Equity? What Stage of Life are you in?
General rule of thumb that I have noticed about Equity vs. Cash Flow.
- Low-income areas = High cash flow, low equity growth
- High-income areas = Low cash flow, high equity growth
- Median-income areas = Average cash flow, average equity growth
For me, median to high-income areas are where I like to focus.
At this stage in my life, equity growth is more important than monthly cash flow.
What’s your focus?
Cash flow, equity growth, or a balance of both?
Most Popular Reply
![Taylor Dasch's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2345925/1641681810-avatar-taylord128.jpg?twic=v1/output=image/crop=512x512@0x64/cover=128x128&v=2)
I feel like theres more opportunity in equity growth, but I personally am in the Median income area - I like to see a little cash flow and have good tenants. Also, if anything were to go wrong I wouldnt have the capital available to pay extra on a property every month.
- Taylor Dasch
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