After you have rented out your property and can successfully cash flow, you need a plan for what to do with the cash flow that remains after paying your mortgage and operating expenses. Here are three things that I am doing and suggest for you.

1️⃣ Save for Operating Expenses

I created a checking account to where my pre-determined operating expenses are stored for later use. Most months, I do not have expenses, and for the last year, they have been small in total. However, at some point in the future, there will be an expensive repair, and it is best to save out of each rental income payment for these future expenses. After all, it is your job to maintain this important asset and take care of the tenants who trust you to operate a safe and livable space.

2️⃣ Save for Reinvestment

This is a current major priority for me. I want to use my rental income to create more rental income. Of course, this takes time and it is best to be patient and let time run its course. My long term reinvestment savings is a separate account that I will use to do a few things: buy more real estate, pay down the current rental or convert to precious metals. Today, for me personally, the top priority may be to pay down the current asset, take the cash flow and buy more real estate.

3️⃣ Give Back

I made this the last recommendation, but this is actually the first thing I do with the rental income. Every month since we started investing in 2019, we tithe, or give back 10% of our rental income to our church. Occasionally, we give more. We recently supported a dear friend’s cause with a surprise gift. This type of generosity is an important habit to have as creators and producers in society. We are not in it to take, but to give and help bless others. This is why I believe we have been successful to date with our investing. We will continue to tithe and be generous with our growing investment income and I encourage you to do the same.