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?