What are you doing with all your excess cash flow?
I find myself in a good position with positive cash flow every month and wondering what to do with it? Especially during these weird times with high inflation, likely recession.

1. Take it out of llc and spend it/add it to cash reserves?

2. Place in business investment accounts? If so, bonds or stocks?

3. Pay down principal on my debt early with 100% of the cash flow. Is that a good idea with inflation? I would think it’s a bad idea as inflation will cheapen the debt in real terms over time. But I have no idea what else to do.

Any thoughts appreciated. Just not sure what to do with all this cash.
[{"id": "icd23ef", "text": "Cash. Use it to take advantage of opportunities to come. In recessions, cash has the highest return rate. I Bonds are doing pretty well at the moment.", "replies": [{"id": "icd2ylz", "text": "Thanks. I like the idea of ibonds, though there\u2019s a hard $ limit on that. Feels weird holding cash knowing it\u2019s losing value daily, but everything else (crypto, stocks, bonds) is doing worse!", "replies": [{"id": "icdgyjg", "text": "It won't lose its value if the market corrects/crashes.    As my old boss said to me, you don't make money on property when you sell the property, you make it when you buy the property.    I would simply come up with a large reserve.  When the moment is right, you will have a large down.  Don't pay down your current loan as that will be the lowest interest rate you will likely see for the next 35 years.  Again, use that money so you don't have to take out as much on your next property.   You don't always have to be getting a great rate of return as that requires tying up your money.", "replies": [{"id": "icdhb3p", "text": "The lowest in 35 years, really? It\u2019sa good rate but will have to be refinanced in 5 years.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "icdkr7i", "text": "DCA into stocks that you feel have gotten over punished doesn\u2019t seem like a bad use of monthly cash flow.", "replies": [], "depth": 2}], "depth": 1}, {"id": "icd26vw", "text": "Once you have strong cash reserves for the property, your next step depends on your goals.\n\nIf you want to continue purchasing investment properties in the next 1-3 years I would pull it out and start saving in a different account.\n\nIf you are looking to get into lower-risk lower-reward investments then bonds are great.\n\nPersonally, I wouldn't pay down debt unless you have a crappy interest rate or are very risk-averse. Like you said inflation is destroying debt.\n\nbut to each their own.", "replies": [{"id": "icd2o10", "text": "Thank you for the answer. I\u2019d like to purchase more properties, but obviously now is not the right time given current conditions. \n\nCurious what is the amount of cash reserves I should aim for in terms of months/years of mortgage payments? Or is there another way of framing it?", "replies": [{"id": "icd8eyg", "text": "Depending on how much risk you're willing to carry. I personally do 6 months of morgage payments (PITI) \n\nAlso depends on the condition of the property, kinds of tenants, etc.\n\nSome properties up to a year others as low as 4 months.", "replies": [], "depth": 3}, {"id": "icd8nyl", "text": "Amount of cash needed to cover costs when property is vacant until reletting. Also consider having enough for TI. \n\nDebt service\nProperty taxes\nUtilities\nLandscaping \nMaintenance \nBroker commissions \nTI costs", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "icd87ty", "text": "If your interest rate is low, you can get returns for your money in excess of the financing cost, so don't pay the down the principal. If your rate is high, pay down the principal.\n\nBuild up healthy reserves, then park some of your cash in bonds or keep the dry powder for an investment opportunity.", "replies": [{"id": "icf2vme", "text": "I have an older loan at 5%.  It took about 4 weeks to start feeling like that's not such a bad rate anymore. (sigh)", "replies": [], "depth": 2}], "depth": 1}, {"id": "icdr51b", "text": "It's only one of two things:\n\n1. Debt reduction\n2. More real estate (which generally requires new debt but....the circle of life :) )", "replies": [{"id": "icg91eg", "text": "Do you mean personal debt reduction?", "replies": [{"id": "icga9jy", "text": "I'm just a simple buyer and holder of commercial RE...not a big institution so...for me...all debt is personal.\n\nSome folks love debt.  Some even encourage debt.\n\nI despise the stuff. But I do recognize its value in the process of acquiring.\n\nContrarily...I looove buying real estate (which generally requires me to acquire debt) so....anytime I have debt...I'm constantly focused on paying it off.  (As well as building cash).\n\nWhen I see an opportunity (such as a piece of real estate) that appeals to me, I do everything I can to acquire it.  Sometimes that's with cash (rarely) other times it's with debt.\n\nAs to debt....I reduce debt every chance I get.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ice68o3", "text": "GameStop monthly DRS purchases and cash reserves for another property. DCA into your favorite companies/crypto. Maybe take a vacation because it's still your one life so might as well have a good one.", "replies": [{"id": "icg8xgn", "text": "What\u2019s DRS?", "replies": [{"id": "icgkygc", "text": "Direct registration. Basically ensuring shares are in your name and not a broker.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "icfht2q", "text": "Saving most of it as cash", "replies": [], "depth": 1}]