How to invest cashflow

2 Replies

I’m under contract on a duplex. I have about $7k in capital reserves for maintenance/repair/vacancy and I should be cash flowing $423/mo. I don’t see this as a property that appreciates so I’m wondering whether I put the $423 in a money market account for my next buy OR pay down principal on the duplex and then cash out refi if I need the money for another buy. I wasn’t planning on purchasing another property until 2021 and am trying to maximize returns on the $423. Thx

I have 2 questions for you:

1 - Why would you take free money, that is already in your control (cash in bank/cash flow), and give it back with the goal of taking it out later...and paying for it (refi)?

2 - Why would you help your tenant pay the mortgage on the duplex for you?