Real Estate Rookie Cash Flow or Equity: Which One Should Beginners Invest for? (Rookie Reply)
Oct 11, 2024
In this engaging discussion, Noah Bacon, a savvy real estate investor and YouTuber known for his "How I Started" series, dives into the classic debate of cash flow versus equity investing. He shares insights on whether beginners should aim for immediate profits or focus on long-term growth. Noah also emphasizes the importance of having sufficient capital for a first rental property and offers advice on transitioning from house hacking. With practical tips on property management and leveraging partnerships, his expertise is invaluable for new investors!
AI Snips
Chapters
Transcript
Episode notes
Prioritize Cash Flow as a Rookie
- Prioritize cash flow as a rookie real estate investor.
- Cash flow offers a safety net for inexperience and potential mistakes in deal analysis and due diligence.
Transition to Equity-Focused Approach
- As you gain experience, transition to an equity-focused approach.
- Use the "stack method": Buy cash-flowing properties, then 1031 exchange into equity-focused investments.
Ashley Kehr's Starting Capital
- Ashley Kehr started with minimal savings ($5,000) and partnered with someone with $80,000.
- They initially made a cash purchase due to lack of knowledge about loans.