Each payment will have an amount that is allocated toward principal reduction.  

That way the money will be there when needed, and you won't be tempted by a large general bank account balance to spend money that should be allocated for major work.  

Jeff Beard Aha, that would make more sense if you didn't allocate CapEx for future within rents collected.  

IRS instructions for Schedule E, lines 12 and 13 states: In most cases, to determine the interest expense allocable to your rental activities, you must have records to show how the proceeds of each debt were used.

Follow me on this:You have $50,000 to allocate to RE, which tells me that you have achieved a fair amount of success in your life - you've found a certain competitive advantage...At the same time, we happen to be in a very difficult market today.

As for me personally any investment having to do with the dollar is a risk because I believe an eventual collapse is imenent so I mostly focus and buy and flip and allocate a certain percentage into gold.

After I finished this, it gave me great information on what I should buy, the reason why and how much I should allocate.

If interest rates were much higher or if the bulk of the posters on BP were people that could not allocate assets to projects with mid teen returns on capital this may be a different discussion.  

Hi everyone, I'm having a hard time deciding how to allocate my budget towards flipping and wholesaling.

If I was starting from scratch, I’d allocate more.