Keep it as a reserve and earn some interest on it.

keep in mind they are getting rates directly from the federal reserveat rates lower then par!

That doesn't mean you don't have cash reserves.

I wouldn’t use the whole 40k, you should set some aside as a reserve for different things that might pop up.

I would try and buy low like others have said, but wait for your mortgage to season and then take the cash out of your house so you have the reserves should something go wrong, also if the the value decreases you have the money in your pocket, and if it jumps up you can always refinance.

Without knowing specifics, I would probably hang onto your profits as a reserve and continue to invest with your initial money, or better yet try to do future deals without using YOUR money.

How much would you keep in reserve per property for repairs, etc?

Please call one of us at the numbers below so we know that you are coming and we may reserve a seat for you.

I don't know what your state income tax laws are, but federally when you resell a property within a year of buying it then it is taxed as a short term capital gain.

I'm licensed in NY and would be glad to assist you but I should advise you something in advance---any broker that is willing to "share the pot" is doing so in direct violation of federal statues (specifically RESPA) covering a majority of residential transactions.