Best way to reinvest cash flow?

[Jesse Birdwell]

Hello all. New to bigger pockets. Pretty simple question, just looking for others ideas and opinions. In 2009 I bought a foreclosure, (my first), for around $65k, and lived in it as well as renting rooms to friends while we were in college. Upon moving I held the property and continued to rent it out. I cashflow roughly $350/month from the property and the mortgage is roughly half paid off. My question is how is this profit best used? Is it worth while to pay this extra cash onto the mortgage principal to payoff the debt off quickly? Stick cash in pocket? Reinvest into another rental property? Love to hear some ideas and opinions from others. Thanks for any help. 

Jesse

[Thomas S.]

Pull out as much equity lying dead in the property as possible and reinvest in another rental. Assuming you have banked the equilivant of 6 month rent for emergencies bank the remaining positive cash flow until you have enough for another down payment.  

Paying off a rental mortgage is not good business scenes as having money lying dead in a property kills the cash flow. Return on equity becomes the primary income instead of the property itself which is suppose to be generating the income.