Paying myself with rental property cashflow

[Oliver Betuel]

Hi All,

Can anyone recommend reading material (BP articles etc) that covers how I can pay myself each month with my rental property cashflow? More specifically, how do I calculate what I need to set aside for taxes before I determine what I can potentially take out to pay myself?

Surprisingly, I've found very little information that covers this topic in detail.

Thank you in advance! 

-Oliver

[Curtis Bidwell]

@Oliver Betuel   I live off my rentals so it’s a very practical question.  If you’ve been at it awhile you can trace the history of your expenses and can go off the averages.  Until then create a working budget and save 6 months of expenses (most lenders will require 6 months reserves when you go to buy more property).  What comes in above that you take for living /savings /investing. 

You account for it simply as an equity draw: a non taxable event -as your income, expenses and depreciation will determine your actual taxable income or loss.