When do you accept your profit?

[Chris Wilkening]

Recently bought my first rental property. After all expenses it should cashflow around $157 per month. 

My question is when do I withdraw the profit? Ideally the reserves would cover anything that came up, but you never know when a large unexpected expense comes up. 

I'm saving up for house 2, do I take my $150/month and move it into my savings account? Or should I keep it in the checking account and withdraw the profit once I'm ready to buy the next one. Seems a little trivial but wondering how you all handle this.

Thanks!

[Michael Ablan]

@Chris Wilkening -  I feel like that all depends on the profit generated from the deal.  I would be putting a $100 profit into my emergency fund so that I don't have to dip so deep into my personal funds when repairs/maintenance come up.    You might have 8 months of collecting "profit" and then have one bad incident that demands all of that "profit" and drives you a couple thousand more into the red.

On a property that's generating a healthy $500-$700+ profit a month, I'd either be driving it back into the property to fix any immediate cap ex threats or saving half for a future investment, and half for padding the emergency bank account