Cash Flow- what to do with it?

[Elana Greer]

Would love some thoughts on the following.

Our two rentals cash flow about $300 a month each. We don’t need that annual income for other investments, meaning we have other capital. So is it best to bank that money regardless or make additional payments to pay down the principle balance on those loans?

It would seem the more we put into those properties the cash on cash ROI decreases but there is definitely merit in paying down the PB.

Eventually when our portfolio grows significantly enough we will certainly bank/reinvest the money but until then what makes the most financial sense?

Thoughts?

[David M.]

@Elana Greer

@Justin Windham

Yes, solo 401k contributions need to have active earnings. Was thinking of more flexible accounting.  I saw OP showed as broker so must have some amount of income.  Take a little more from “business income” and use the passive income to supplement...