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Updated almost 5 years ago on . Most recent reply
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How long until you start paying yourself?
I know there are numerous ways folks handle the cashflow from rental properties - keeping cash in the bank and piling it up for another down payment on another property, etc., etc. But, when you purchase an investment property with the goal of ultimately using the cashflow to supplement your own income, at which point do you stop saving up cash reserves in the bank (vacancy, disaster, capex, repairs, etc.) and start diverting the cashflow to yourself? Something I'm trying to plan accordingly, as I'm working to secure rental properties to diversify my own family's income streams. I want to build the cash reserves appropriately, and I know I need to have at least 3-4 months for vacancies, but also would like to know if I'm looking at 1-2 years before I can start seeing the $200/unit (or however much) start going to my own income, or.....?