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Updated over 7 years ago on . Most recent reply

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21
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John Park
  • Investor
  • Lewisville, TX
48
Votes |
21
Posts

What do you do with Cashflow?

John Park
  • Investor
  • Lewisville, TX
Posted

I am new to investing, as I have bought my first 2 houses in the latter half of this year. I guess I didn't think this part of it through in detail before starting my new business, but, as stupid as this question may be, what do you do with the cashflow? I am netting about $700/month between the two properties and hoping to add a third by early next year, and I have caught myself wondering what to do with said net income i.e.,  do I pay myself a salary? Do I just let it sit in their respective accounts until I need it? Do I have to pay income tax if I cut a check to myself? Do I open another account to collect my cashflow in? I have no idea at this point, although I am leaning towards just letting it sit there for now. I guess I should ask my CPA, but since I've already spent the time to post this, I'd like to see what the BP community has to say...

Most Popular Reply

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2,953
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4,475
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Alexander Felice
  • Guy with Great Hair
  • Austin, TX
4,475
Votes |
2,953
Posts
Alexander Felice
  • Guy with Great Hair
  • Austin, TX
Replied

100% of my business income goes to expanding my business. Between purchases I just hold it in a no risk savings account with moderate interest (1.20% Ally)

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