Progress in Restoring Cash Flow
Progress has been a long time coming. 2 years ago my wife and I moved back to the US from China, we bought a larger home, my wife stopped working full time, and we had our first child. Since then it feels like we have been treading water or worse as sometimes we have lost ground. Our cash flow from my job is now consumed by our monthly expenses and we have had to adjust to a much slower accumulation of assets as a result.
Since then our focus has been to route cash to paydown some of our real estate investment debt to free up additional cash flow. After all, the key for us at this point is cash flow - with multiple streams of income and excess cash every month the benefits are numerous:
- the amount of cash we need to hold for emergencies goes down
- we can feel more comfortable allocating cash or leverage to future investment opportunities as they arise
- unexpected expenses can be absorbed more easily
- financial concerns about our ability to ride out a job loss
- we can feel comfortable utilizing additional outsourcing to reduce the stress of our daily lives
With the primary mortgages paid off on both rental properties we will have up to $1,500 in additional cash flow from the rental properties. This will significantly improve our monthly cash flow when added to our job income.
Related in Cash Flow:
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