Is it better to put cash flows toward principle or pocket?

[Matt Finneseth]

I'm currently learning all the basics to REI and one thing came to mind - is it better to take the cash flows from renting out a property and pocketing them or putting them towards the principle on the loan? I'm assuming this is a situational question, but I'd like to hear your guys' opinions.

[Marko Cvetkovic]

Matt it depends on your situation. Do you have cash in the bank as reserves? Lets say you have a cash reserve of 10k. Well that is plenty to replace a roof or hvac on a sfr or small multi. Remember having a reserve gives you peace of mind.