What you do with your cash flow?

Question

I was just wondering what do you do with cash flow when building your portfolio. Do you

A. accumulate it all for next down payment.

B. Snowball an existing deal which was financed

C. Do a Mix of both.

Mitch Deminski · Answer

A

Step 1. Build portfolio so your after debt net income is double what you need to live on.

Step 2.  Debt snowball these properties and pay-off as fast as you can.

Been doing this for 20 years and I can see the end of step 2....and it's looking gooooood.

Christopher Giannino · Answer

@Brandon Turner

I think it depends on what stage of investing you are at and what your future goals are...

I've read that people use the cash flow all the ways mentioned in your original post.  Also, some use it to live off of.  Some use it to build up more reserves when first starting off.  Some use it to pay for some debt they currently have (paying down student loans.)  So I think it really just all depends!

Alex Shaughnessy · Answer

accumulate. however, when I become financially free I might begin to do a mix of both

Brandon Turner · Answer

Very good input like several of ya'll I have a W2 job so I was planning to do a little of both pay down loans and let some portion keep building for more acquisitions.

Joe Villeneuve · Answer

I still do 1090 work.  Don't plan on ever retiring.  I never put cash flow back into the biz though.  Shouldn't need to, and if you do, you're going to take forever to get where you don't need to.

JD Martin · Answer

I turn everything back into the business and put some of the cash into good index funds as well. I don't need the money while I'm still doing W2 work. When I retire in the not-too-distant future, I'll live off the income ala @Joe Villeneuve.

Monika P. · Answer

I'm also just letting it sit and build up as I have other income.

Dustin Beam · Answer

On my previously owned property, I basically kept rolling the profit back into the property, which turned out to be  a 1.5 year flip. It profited well (IMO) but used that to purchase my new properties.

I'm currently fixing up units that were left distressed. So long story short, I haven't pocketed any cashflow, but in a roundabout way it was used for future purchase.

Once I get these units fixed and rented, I believe I'll cashflow fairly well. I think I'll split the cashflow in something like 25% to me, 75% to business for expenses and/or future purchase.

Joe Villeneuve · Answer

Option "D"...I spend it on monthly bills.

What you do with your cash flow?

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