How to legally utilize one LLC income to support a second

[Thomas Moss]

Currently I am a partner in an LLC with 1 rental property. We are looking to purchase a second property, but I am unsure about how to utilize the income from first rental to support a second. I understand commingling of funds is illegal so you cant simply transfer funds from one to another LLC for down payment, mortgage, repairs/rehab etc. Do we need to make a distribution to ourselves in order to be able to reinvest it?

Would love any helpful links, books, podcast episodes, or youtube videos to start directing me the right way. Certainly I would consult a professional prior to advancing, but I would like a rough understanding first.