Reinvesting rental income in stock market

[Erica M.]

Hi. I'm looking for advice on investing our rental income in the stock market. Right now our money is sitting in a checking account making peanuts. Do any of you put your rental income in the stock market?  I'm thinking something low riskish, and something that pays a dividend.   Perhaps bonds. I'm not sure. I invision continuously adding to the investment a few times a year as rental income comes in. Thanks!

[Anthony Gayden]

Originally posted by @Erica M.:

Hi. I'm looking for advice on investing our rental income in the stock market. Right now our money is sitting in a checking account making peanuts. Do any of you put your rental income in the stock market?  

 In a word, NO. 

All of my rental income is used for:

1. Capital expenditure

2. Property improvements

3. Emergency reserves

4. Further real estate investment

Keeping that in mind, I do not wish to have my money tied up in a volatile stock market. Let's say one of my AC units breaks and I need $1500 to fix it. Well my rental income is in the stock market, and the market is down because Puerto Rico is bankrupt and there is war in the Ukraine, so to take those funds out, I have to sell at a loss.

I need to replace the 25 year old roof on my building costing me $7000, but the market is down because an ISIS suicide bomber hit Turkey!!!!! Now I am selling my stocks at a loss to get my roof replaced.

A great property has come on the market fitting all of my criteria, all I need is the down payment. Unfortunately, the market is down because Greece wants out of the Eurozone.