There are two main ways to make money in real estate: through cash flow and building equity.
Cash flow means the rent you collect each month exceeds your expenses, giving you profit regularly.
Equity builds as you pay down your loan and as the property’s value goes up over time (appreciation).
Buying properties below market value and improving them (flipping) creates equity quickly but takes a lot of time and effort.
Most investors focus on steady cash flow and gradual equity growth instead of flipping, which is more like a job.
The goal is to have investments that generate money while you’re not actively working.
