Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 7 years ago,

User Stats

16
Posts
5
Votes
Kyle Davis
  • Ellicott City, MD
5
Votes |
16
Posts

How much cashflow or flipping profits do you keep?

Kyle Davis
  • Ellicott City, MD
Posted

This is a two part question, I'm curious to know how both buy and hold and flippers distribute their cash flow or profits to themselves.

Scenario #1: Your a house flipper, you finish a project and profit $30,000.  Of that $30,000, how much do pull out to 'keep to pay yourself'?  Do you take the entire profit as 'income'?  Do you take say $15,000 in 'income' and leave the other $15,000 in the bank to help invest in the new flip? 

Scenario #2: Your a buy and hold investor, you cashflow on a property $500/mo.  Of that $500, how much do you provide to yourself as 'income' vs. keeping it in the bank or invested back to your business.  I.E. will you pay yourself say $250/mo. and then leave $250/mo. in the bank to account for potential repairs, capital for new investments etc.?  

Thanks!

Loading replies...