Investing Deposits? Risk/Reward?

[Syman Scarpellino]

Hey BP Community, 

My rental portfolio is steadily growing (still pretty smalltime), I am up to about $20,000 in tenant deposits. Thus far the money just sits in an account, as its not my "free and clear" money.

What do you guys think about Investing deposit money into the stock market? 

I am not suggesting putting all the money on a roulette table, or a meme stock like AMC or GME.

However, the idea of investing the money in a stable dividend yielding stock is an interesting idea.

Where would you guys invest it? Would you Invest it? 

[Scott M.]

Depends on how you define tenant deposits and your love of risk.  If by tenant deposits you mean rent money that you have set aside yes, you can do anything you want with it.  If you mean prepaid rent, security deposits or other type of deposits then no, that is not your money today and it needs to stay where it is.

If it is rent money you can buy anything you want, including stocks. The question is how much do you need to have on hand for emergencies.  Need a new furnace, roof, whatever it is, you need to have funds set aside to cover those unknown costs, even an unexpected tenant turn.  If you love risk and the idea of being cash poor gambling on the fact you won't need the money you can spend it all.  If you hate risk then leave it be.