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Updated almost 4 years ago on . Most recent reply
![Kevin Lanphear's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/1947048/1621516906-avatar-klanphe.jpg?twic=v1/output=image/cover=128x128&v=2)
What to do with my extra rental income cash flow?
So here’s the breakdown.
Let's say I just bought 3 rental SFH properties this year cash flowing $500 each unit. That's $1500 total per month in cash flow after paying all expenses, property Mgt, and mortgages etc.
The $1500 gets deposited into a rental income checking account. That account has enough money sitting there to cover like 3 months of operating the 3 homes in case something happens.
So what do I do with all the excess money and where to invest it so that I can make more money quickly so I can build up cash to buy a 4th rental property?
Cryptos or stocks or what?
FYI I already invest into all of this already with my own personal money
Most Popular Reply
![Joshua McMillion's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/1438756/1631872836-avatar-joshuamillion.jpg?twic=v1/output=image/crop=605x605@0x17/cover=128x128&v=2)
I am more conservative when it comes to money and finance, but I use all my cashflow toward my next property. For example, if I have $500 per month in cash flow, I will save that towards my next property in a high-performance savings account or money market fund with Vanguard. If I need to save for a conventional loan, that $6000 extra yearly passive income will help me reach that goal. In your case, you would have $18000! Eventually, it becomes a snowball where you can rapidly acquire new property.
My advice is centered around my long-term buy and holds strategy with a specific avatar and narrow search criteria. I also have a $5,000 CAPEX saved before entering the deal as a general rule of thumb. Crypto and stocks could provide you significant growth, but in turn, could also prevent you from scaling due to bear markets.
Sincerely,
Josh