EPISODE 002:
Part 2 of 3 Big Decisions Investors Must Make: Cash Flow or Capital 
Gains?

Categories:
Strategy & Tips

Description & Show Notes:
In this episode, we continue our 3 part Foundation series and look at the second of 3 Big Decision that every investor needs to make to develop the strategy that works best for them in their current situation: Are they going after Cash Flow, or Capital Gains?

Cash Flow Investors:

• Slow and steady rent coming in
• Longer term holding period but less work
• Usually meant to supplement current income from a job
• Easier to manage yourself or hire a Property Manager
• Stick to timeless designs to save money
• Lower risk AND lower tax bill, but you must be patient
• More likely to succeed given a longer time horizon

Capital Gains Investors:

• Make money from profit when selling
• Usually buy, renovate, and sell in a few weeks to a few months
• Many people try to use this to replace current income from a job
• Management isn't usually a factor because there are no tenants
• Aim for current styles and trends
• Higher risk AND higher tax bill
• If it goes right, you make money faster

3 Big Decisions Investors Need to Make to Develop their Strategy

1. Are you playing Offense of Defense?
2. Are you going for Cash Flow or Capital Gains?
3. What class of property is best for you, to buy and also to rent or sell?

Links from this episode:

• Real Estate Brokerage Services: AuburnInvestmentProperties.com
• Real Estate Investor Coaching: BetterREI.com
• ​More info on 1031 Exchanges: Auburn1031Exchanges.com

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Hosted by:
Chris Kearns
- Investor, Broker
- 2x Auburn Grad

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