Are We Chasing Cash Flow or Building Wealth?? A Long-Term vs. Short-Term Dilemma

[Kyle Gagnon]

I’ve been thinking a lot lately about the balance between immediate cash flow and long-term wealth building in real estate.

So many of us jump into real estate chasing monthly passive income (which is great!), but I’ve noticed a pattern—sometimes we pass on deals with incredible appreciation potential, tax benefits, or value-add upside simply because they don’t meet our $200/month cash flow threshold.

Here’s the dilemma:

✅ Cash flow pays the bills today—but often comes with higher-risk areas, more tenant turnover, and slower appreciation.

💼 Equity growth/appreciation-focused deals may bleed cash early on but can 10x your net worth over time if managed well.

My question to the community:

• Do you prioritize one over the other in your current portfolio?

• How has your strategy changed as you've grown?

• If you had to start over, would you choose differently?

Would love to hear from both new and seasoned investors here.

Let’s dig into this—what's your North Star?

[Joe Villeneuve]

Both.  They are intertwined.  Long term wealth is usually misinterpreted as being the same property long term.  It shouldn't be.  Cash flow is applied wrong.  It's the actual long term income, but also has short term responsibilities.

Short term cash flow allows the tenant to buy the property for you, while the property appreciates.  This is why it's important to have positive CF.  Appreciation isn't long term wealth as it takes place.  Appreciation is short term gains that is in the form of frozen cash.  That frozen cash, when defrosted, allows you to move your now li quid cash forward into bigger gains.  The greatest value from equity is its increased buying power in the near future, not long term future.

To say this isn't long term though isn't entirely true.  It is.  Just not in the same property.  The equity/profit you gain is simply moved, with "friends ($$$)", from one investment(s) to the next.