Cashflow over equity

[Andrew Sanders]

I am just getting into investing and am working on determining my niche, I know my current goal is cashflow over equity. Simply because my short term goal is to be able to quit my W2 job. Once I have reached that goal I plan to transition into a different area with a greater focus on equity. My question is: what is the best way to build cashflow, particularly when starting out? Should I focus on single family or multi-family? Or is there some third option that would work better? 

[Glenna Wood]

Cash flow is always property specific so as mentioned your location is a huge factor. Focus on your big picture. Buy a multi family property in a good school neighborhood and owner occupy it. Buy it with an easily assumable loan like FHA. Then you can pass it on to the next start up investor when your goals develop. The rents on the other units will cover your mortgage/personal housing costs which is a big boost. Overall always live below your means. Limit your $$ in depreciating assets like cars. Take advantage of a self employed retirement plan as soon as you can.