Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
Hey guys,
Just out of curiosity.. after paying your expenses, setting aside for CapEx, vacancy, etc. what do you do with any extra $ if there is any? Do you save it for another property? Use it for personal use?
I save it also, was just curious because no one ever talks about the extra $. I don’t set aside percentages, it all just goes in an acct and sits there. Growing until something bad happens haha
It goes to my next purchase fund and just in case account. All my reserves for my property is fully funded prior to buying. You never want to jump into a deal without your reserves set already.
@Matt M. Up to this point we've just saved it up for the business (rainy day fund, rehab, down payment on new property, etc...). At some point though, we'll actually use it for personal expenses. Probably once I leave the W2 world
I send an extra $8,000/mo to my one adjustable loan so it will be paid off prior to adjustment. (Currently 2.5%, will adjust to 6.5% in 30 months at current interest rates.)
I bought enough to retire so I’ll probably keep paying them off fast after this one. The Chas flow is insane on paid off properties. :-)
Mine just sits awaiting deployment into a new rental property. Once I’m out of the growing phase I will start to use the money for living, until then I just use my lowly W2 job to get by.
My goal is replacing my income over time and it takes time to do that.
I save for future investments and opportunities, but there's no reason that money can't work for you while you save for your next project. Purchasing 4 week Treasury Bills is a very low risk method to help you stay ahead of inflation. They currently sit at a 2.4% annualized return.
If you're looking for something less active, the Marcus Savings account by Goldman Sachs is giving you a 2.25% APY. Might as well get a return on that money as it waits for its glorious future.