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Updated almost 4 years ago on . Most recent reply

User Stats

64
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24
Votes
Kevin Lanphear
  • Rental Property Investor
  • Acworth, Ga
24
Votes |
64
Posts

What to do with my extra rental income cash flow?

Kevin Lanphear
  • Rental Property Investor
  • Acworth, Ga
Posted

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

User Stats

487
Posts
658
Votes
Joshua McMillion
  • Rental Property Investor
  • Madison, AL
658
Votes |
487
Posts
Joshua McMillion
  • Rental Property Investor
  • Madison, AL
Replied

@Kevin Lanphear

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 

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