Tell me more about "paying yourself first"

[Dustin Beam]

In part, I understand the concept. At least I think so. The way I take it is: Take a certain amount of the profits each month and give it to yourself.

Another way it was defined was in a recent podcast: Income - Profits = Expenses. Ok sure that sounds great, but real estate seems to have real expenses that can't be ignored and a relatively concrete income. So it seems that if you use this method, you might be deferring maintenance at the expense of tenants' happiness.

Anyone wiling to expand on how you, the landlord, take your cut first, and then determine where everything else goes?

[George P.]

that's a foreign concept to me. 6 yrs..... and never gotten paid from the business. but i have a full time job.