How do you best use positive cashflow?

Does anyone have thoughts about how to best direct your positive cashflow? Obviously there is a big difference between taking your (for example) $500 a month in positive cashflow to spend on shopping versus reinvesting in more property.

I can understand 100% reinvestment if your trying to build the biggest possible retirement portfolio, but what if you're trying to start living off of it in the near future? Do you decide on an "owners cut" and doll that out accurately every month? And if so, how do you decide whether that "cut" should be 10% or 90%?

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Replies

  • Oh I forgot to add, invest the 15k in notes!

  • Check out my discussion on Investing In Notes to see the section on how to sell your cash stream. There are investors with say....Self Directed IRA accounts that would buy 5 years of 500 per month (30k total) for say 25k today, take the 25, put 10k away for possible vacancies and invest the 15k.

    Enjoy!

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