Do you prioritize equity growth or cash flow in your investments?

[Devin James]

When running numbers on an investment property, I focus more on equity growth than monthly cash flow.

Here’s why:

If I can acquire a property at a low basis and add significant value, I can:

1) Sell and reinvest elsewhere

2) Cash-out refinance to recapture my investment. Id be happy to break-even with the rental income if I get all of my invested capital back.

At this stage in my life, these equity plays are more impactful than holding onto a property for a couple hundred dollars of monthly cash flow.

What’s your take? Do you prioritize equity growth or cash flow in your investments?

[Chris Seveney]

Quote from @Devin James:

When running numbers on an investment property, I focus more on equity growth than monthly cash flow.

Here’s why:

If I can acquire a property at a low basis and add significant value, I can:

1) Sell and reinvest elsewhere

2) Cash-out refinance to recapture my investment. Id be happy to break-even with the rental income if I get all of my invested capital back.

At this stage in my life, these equity plays are more impactful than holding onto a property for a couple hundred dollars of monthly cash flow.

What’s your take? Do you prioritize equity growth or cash flow in your investments?

During period of low interest every post on BP was about cash flow - now that cash flow upon acquisition is dead the only option is equity which is also reeling because price appreciation is finally back to reality

personally I buy for growth because I buy to hold for 10-20 years or longer. I am 100% ok with my w2 providing me income to maintain my life and grow a nest egg for the later aspect of life