When to take profits out of Rental?

[Account Closed]

Have about $2k of profits sitting in a checking account solely for my rental ($4k total with SD).

When can/should I take the excess profits out and invest them?

[Jaycee Greene]

Unless you already have a capital reserve fund that will pay for unforeseen, major expenses, like a new water heater, roof, or A/C unit for example, I'd keep the profits in the account until it can cover 6-12 months of operating expenses. Keep the SD out of the calculation as that is the tenant's money at this point.