My tenant's rent ($2300) is due by the 5th of the month, but my mortgage is due by the end of the month. I have been just transferring the "cash flow" portion of the rent (rent roll minus expenses, including PITI) to a separate account after I get the rent, and then pay the mortgage at the end of the month. It just sits there though, all month, in a business checking account making 0.01%. Cash flow is right at $700/month, so I really only get to invest $700, and that's if I don't have any repairs or anything that month. I'd like to figure out how to get the full $2300 invested instead of just $700.
Is there a way that I can make money off of this? I was thinking about maybe trying to invest the $2300 as soon as I get it, let it grow a bit, then pull it out at the end of the month to pay the mortgage and management fees, then drop $2300 back in when get the next month's rent. I can cover a few months if I take a huge investment loss, though I was thinking I'd stick it in something like an S&P 500 etf.
So...bad plan? Good plan? Would this make taxes a nightmare?