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