Paying Yourself and Build Reserves

[David Baskin]

Hello all,

I'm looking for interesting ways to pay yourself while building a significant cushion of cash reserves for each property. How do you generally execute this? Do you build up a pot of cash reserves and only then begin paying yourself net cash flow once your goal is reached (let's say 6 months of expenses)? Do you start paying yourself immediately after acquisition, while putting aside a designated amount each month for reserves? Something else? 

Thanks! 

[Jon Kelly]

@David Baskin Similar to @Joshua McMillion, all funds made from REI via monthly cashflow or cash out refinances are used to fund additional investments.

I have a cash reserve account for all properties, which is rarely touched. I rely on my W-2 job to "pay myself" and pay for lifestyle expenses.