Stop Chasing Cash Flow: The 2025 Real Estate play nobody’s talking about

In this solo episode, Mikey breaks down why cash flow is fuel, not the finish line, and how to force appreciation so your deals pencil in a high-rate world.

What you’ll learn:
Rates & reality: Why ~6.29% mortgages matter and how a small drop can save real dollars monthly.
• Cash flow vs. appreciation: The mindset shift younger investors should consider to build wealth.
• Negative leverage decoded: When a 5.5% cap vs. 6%+ debt becomes a silent deal-killer and what to do instead.
• Build-to-rent advantage: Targeting ~7.5% yield-on-cost so income covers debt service.
• NOI growth levers for 2025: Low-cost, high-impact upgrades (paint, LED, hardware, landscaping), ADUs/conversions, RUBS, and ancillary income (storage, reserved parking, pets).
• Case study: From a duplex to a 32-unit entitlement—how forced appreciation can create value before you build.
• Timing the next window: What rising cap rates + falling interest rates could mean for buying.

Why this matters: You can’t control the market, but you can control your inputs design, entitlement, underwriting, and operation to drive NOI, protect cash flow, and compound your equity.

Timestamps/Chapters
0:00 – High-rate reality & why 6.29% matters
03:59 – Cash flow is fuel, not the finish line
06:04 – Negative leverage explained (and how to avoid it)
07:43 – Build-to-rent strategy for 7.5% yield
10:04 – Raising NOI in 2025 (smart upgrades + income plays)
12:16 – ADUs & RUBS: two levers to double income
15:31 – $5K NOI = $100K value (the wealth equation)
17:23 – 2025 investor playbook

The content of this video (“Video”) is for informational purposes only, is not offered as investment advice and should not be deemed as investment advice, and reflects the opinions and projections of COMMUNE as of the date of publication, which are subject to change without notice at any time subsequent to the date of issue. COMMUNE does not represent or warrant that the information presented in this Video is accurate, current, or complete or that the estimates, opinions, projections or assumptions made in the Video will prove to be accurate or realized.
Certain statements reflect projections or expectations of future financial or economic performance of the project. Such “forward-looking” statements are based on various assumptions, which assumptions may not prove to be correct. Accordingly, there can be no assurance that such assumptions and statements will accurately predict future events or the project’s actual performance. Past performance is not an indication of future results.
This Video does not constitute an offer to invest and such offer will only be made by means of a confidential offering document that should be carefully reviewed before determining whether to invest. As with any investment there is a risk of loss, including up to the amount of investment.


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