landlordlaw

What do you do with surplus rental income?

Discussion in 'Buy-to-Let Property Investment' started by Longterminvestor, Feb 20, 2018.

  1. Longterminvestor

    Longterminvestor Active Member

    In the long term I am looking to acquire properties where the rental income covers all expenses including mortgage repayments and leaves a little surplus. What do you do with the surplus rental income? Do you accumulate the funds to improve your existing property or do you look to buy another property in due course?
     
  2. Josh Caldwell

    Josh Caldwell Josh Caldwell - American Real Estate Investor

    I have built my portfolio by building up my excess cash flow and using that next egg to buy more cash flowing rental property. In the US we dont even consider buying property unless it covers all of it's expenses, and creates extra cash flow.
     
  3. FWL

    FWL Member

    In many ways BTL investors should see any capital appreciation as more of a bonus than a given (although you would normally expect some appreciation over time). If the rental income covers all costs and leaves some surplus then build that surplus up for a deposit for the next property. After a relatively short time your portfolio should be self financing :)
     
  4. realdeals

    realdeals Member

    In time a property portfolio should be self financing - as an investor builds up equity in one or more properties, these can be refinanced to fund other investments. On top of this any additional finance built up from surplus rental income can also be added to your investment fund :)
     
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