• Home
  • Episodes
    • 000: Introduction
    • 001: 3 Ways to Make Money in Real Estate / 1 of 3 Big Decisions for Strategy
    • 002: Part 2 of 3 Big Decisions for Strategy : Cash Flow or Capital Gains?
    • 003: Part 3 of 3 Big Decisions for Strategy: Understanding Property Classes
    • 004: Part 1 of 3 on The Basics: Basic Financial Stuff
    • 005: Part 2 of 3 on The Basics: Basic Property Stuff
    • 006: Part 3 of 3 on The Basics: Basic Management Stuff
    • 007: Investor Interview: Josh Davis
    • 008: Part 1 of 2 on Property Valuations
    • 009: Part 2 of 2 on Property Valuations
    • 010: Will I Make Any Money? Real Numbers & Self Sabotage
    • 011: Using A Skills & Time Assessment To Choose a Property & Plan Your Project
    • 012: Understanding Contracts as an Investor
    • 013: Investor Interview: Bryan & Erin Waits
    • 014: Understanding Organizational and Financial Contracts
    • 015: Part 1 of 2 on Important Points of Leases & Property Management Contracts
    • 016: Part 2 of 2 on Important Points of Leases & Property Management Contracts
    • 017: Investor Interview: Nick Hayes
    • 018: 10 Bits of Wisdom
    • 019: Auburn and Airbnb or VRBO
    • 020: My First 6 Months: Interview with John Edwards
    • 021: My First 6 Months: Interview with Derek Jackson
    • 022: City Council Update: An Interview with Beth Witten
    • 023: Mortgage Broker Interview: An Interview with Barry & Gleason Jones 1/2
    • 024: Mortgage Broker Interview: An Interview with Barry & Gleason Jones 2/2
    • 025: Timeline of Your Investing Journey & Cash on Cash Return
    • 026: Auburn and Coronavirus
    • 027: Future Pacing & Practical Landlording
    • 028: Investment Property Insurance with Kathy Powell
    • 029: Inside a Rehab Project: Rossmere Condos: Part 1
    • 030: Investor Interview: Brent Beard
    • 031: My 10 Biggest Mistakes
    • 032: 2020 Year in Review
    • 033: Looking Ahead to 2021
    • 034: Andrew Parmer 1 of 2
    • 035: Andrew Parmer 2 of 2
    • 036: My Favorite Real Estate Books
    • 037: Jim Andrews 1 of 2
    • 038: Jim Andrews 2 of 2
    • 039: Mayor Ron Anders
    • 040: Russell Balch 1 of 2
    • 041: Russell Balch 2 of 2
    • 042: 5 Year Plans
    • 043: Catastrophe of Success
    • 044: May 2022 Update & Current Trends in Auburn Real Estate
  • Work with Me
  • Our Brokerage
  • Contact
  • About
Auburn Investment Properties Podcast | A Conversation about Real Estate Investing in Auburn, Alabama
  • Home
  • Episodes
    • 000: Introduction
    • 001: 3 Ways to Make Money in Real Estate / 1 of 3 Big Decisions for Strategy
    • 002: Part 2 of 3 Big Decisions for Strategy : Cash Flow or Capital Gains?
    • 003: Part 3 of 3 Big Decisions for Strategy: Understanding Property Classes
    • 004: Part 1 of 3 on The Basics: Basic Financial Stuff
    • 005: Part 2 of 3 on The Basics: Basic Property Stuff
    • 006: Part 3 of 3 on The Basics: Basic Management Stuff
    • 007: Investor Interview: Josh Davis
    • 008: Part 1 of 2 on Property Valuations
    • 009: Part 2 of 2 on Property Valuations
    • 010: Will I Make Any Money? Real Numbers & Self Sabotage
    • 011: Using A Skills & Time Assessment To Choose a Property & Plan Your Project
    • 012: Understanding Contracts as an Investor
    • 013: Investor Interview: Bryan & Erin Waits
    • 014: Understanding Organizational and Financial Contracts
    • 015: Part 1 of 2 on Important Points of Leases & Property Management Contracts
    • 016: Part 2 of 2 on Important Points of Leases & Property Management Contracts
    • 017: Investor Interview: Nick Hayes
    • 018: 10 Bits of Wisdom
    • 019: Auburn and Airbnb or VRBO
    • 020: My First 6 Months: Interview with John Edwards
    • 021: My First 6 Months: Interview with Derek Jackson
    • 022: City Council Update: An Interview with Beth Witten
    • 023: Mortgage Broker Interview: An Interview with Barry & Gleason Jones 1/2
    • 024: Mortgage Broker Interview: An Interview with Barry & Gleason Jones 2/2
    • 025: Timeline of Your Investing Journey & Cash on Cash Return
    • 026: Auburn and Coronavirus
    • 027: Future Pacing & Practical Landlording
    • 028: Investment Property Insurance with Kathy Powell
    • 029: Inside a Rehab Project: Rossmere Condos: Part 1
    • 030: Investor Interview: Brent Beard
    • 031: My 10 Biggest Mistakes
    • 032: 2020 Year in Review
    • 033: Looking Ahead to 2021
    • 034: Andrew Parmer 1 of 2
    • 035: Andrew Parmer 2 of 2
    • 036: My Favorite Real Estate Books
    • 037: Jim Andrews 1 of 2
    • 038: Jim Andrews 2 of 2
    • 039: Mayor Ron Anders
    • 040: Russell Balch 1 of 2
    • 041: Russell Balch 2 of 2
    • 042: 5 Year Plans
    • 043: Catastrophe of Success
    • 044: May 2022 Update & Current Trends in Auburn Real Estate
  • Work with Me
  • Our Brokerage
  • Contact
  • About

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
Brought to you by:
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Auburn Investment Properties  | 852 N. Dean Road, Suite 100, Auburn, AL 36830

Website Design & Hosting by Local Profits Group
  • Home
  • Episodes
    • 000: Introduction
    • 001: 3 Ways to Make Money in Real Estate / 1 of 3 Big Decisions for Strategy
    • 002: Part 2 of 3 Big Decisions for Strategy : Cash Flow or Capital Gains?
    • 003: Part 3 of 3 Big Decisions for Strategy: Understanding Property Classes
    • 004: Part 1 of 3 on The Basics: Basic Financial Stuff
    • 005: Part 2 of 3 on The Basics: Basic Property Stuff
    • 006: Part 3 of 3 on The Basics: Basic Management Stuff
    • 007: Investor Interview: Josh Davis
    • 008: Part 1 of 2 on Property Valuations
    • 009: Part 2 of 2 on Property Valuations
    • 010: Will I Make Any Money? Real Numbers & Self Sabotage
    • 011: Using A Skills & Time Assessment To Choose a Property & Plan Your Project
    • 012: Understanding Contracts as an Investor
    • 013: Investor Interview: Bryan & Erin Waits
    • 014: Understanding Organizational and Financial Contracts
    • 015: Part 1 of 2 on Important Points of Leases & Property Management Contracts
    • 016: Part 2 of 2 on Important Points of Leases & Property Management Contracts
    • 017: Investor Interview: Nick Hayes
    • 018: 10 Bits of Wisdom
    • 019: Auburn and Airbnb or VRBO
    • 020: My First 6 Months: Interview with John Edwards
    • 021: My First 6 Months: Interview with Derek Jackson
    • 022: City Council Update: An Interview with Beth Witten
    • 023: Mortgage Broker Interview: An Interview with Barry & Gleason Jones 1/2
    • 024: Mortgage Broker Interview: An Interview with Barry & Gleason Jones 2/2
    • 025: Timeline of Your Investing Journey & Cash on Cash Return
    • 026: Auburn and Coronavirus
    • 027: Future Pacing & Practical Landlording
    • 028: Investment Property Insurance with Kathy Powell
    • 029: Inside a Rehab Project: Rossmere Condos: Part 1
    • 030: Investor Interview: Brent Beard
    • 031: My 10 Biggest Mistakes
    • 032: 2020 Year in Review
    • 033: Looking Ahead to 2021
    • 034: Andrew Parmer 1 of 2
    • 035: Andrew Parmer 2 of 2
    • 036: My Favorite Real Estate Books
    • 037: Jim Andrews 1 of 2
    • 038: Jim Andrews 2 of 2
    • 039: Mayor Ron Anders
    • 040: Russell Balch 1 of 2
    • 041: Russell Balch 2 of 2
    • 042: 5 Year Plans
    • 043: Catastrophe of Success
    • 044: May 2022 Update & Current Trends in Auburn Real Estate
  • Work with Me
  • Our Brokerage
  • Contact
  • About