How do you live off your cashflow?

[Philip Hy]

I've never heard anyone on any podcast or webinar talk about the mechanics of how they live off their cash flow. Do they have a bank account for each property? Or does it all go into a single bank account? How much, how often do they withdraw? Some of these things will of course be affected by the number of properties you have and whether your're using an LLC.

Currently my four properties have their mortgages withdrawn from a single bank account where all my rents also go each month. My plan when I retire is to keep $20k ($5k per property) in cash in my account. Then, after paying the mortgages each month, withdrawing anything above the $20k reserve. If I have an expense, I'll draw off of the $20k reserve, and use rents to "refill" the $20k reserve before withdrawing my retirement spending money.

Thoughts?