Passive Real Estate Investing TBT: Ask Marco - What Should We Pay Ourselves From Our Rentals?
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Dec 4, 2025 In a recent discussion, a newcomer asks when to start paying themselves from rental income. Key insights are shared on calculating Net Operating Income and understanding expenses. The conversation emphasizes the balance between immediate cash flow and long-term portfolio growth. Marco advocates for prioritizing rapid acquisitions and utilizing strategies like the snowball method for mortgage payoff. Ultimately, payout decisions should align with individual investment strategies to maximize financial freedom.
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Choose Payouts Based On Strategy
- Do decide whether to take rental cash now or reinvest based on your overall strategy and needs.
- If you don't need the income, prioritize portfolio growth by saving cash for additional down payments.
New Investors' First Three Deals
- Victor and his sister closed on three seller-financed single-family homes with projected NOI of about $10,000 a year.
- They planned to reserve earnings for repairs and future purchases and considered paying $150 per unit when they reach 20 properties.
Payouts Are Simple, Strategy Is Harder
- Paying yourself is simple: cut a check and report it on taxes.
- The harder decision is aligning that payout with whether you want cashflow now or faster unit growth.