This episode is sponsored by SmartVester. Connect with an investing pro for free at Ramsey Solutions.

Com slash invest.

You're listening to Ramsey everyday millionaires where we talk investing, retirement, building wealth and outrageous generosity. Courtney, welcome to the Ramsey Show.

Hi Dave and George, can you hear me all right?

We can, how are you?

Oh, I'm doing all right.

I am so honored to talk to you guys. I'm very excited.

We're glad to have you. How can we help?

I have a question. I'll tell you my question and I'll give you a little bit of background.

So I am wondering what I should do with my rental, excuse me, my rental property

income. I moved in with my fiance, and so my house was empty, I tried to sell it. I was on the

market for about a year and no luck so I decided for the

winter season to get a renter and so now I have this extra income from a renter and I'm just wondering if I should put it towards I'm in baby-

this extra income from a renter and I'm just wondering if I should put it towards I'm in

baby step two I'm wondering if I should be throwing it towards I get snowball or if I should

be saving a portion of that in case Morse case scenario and and I have to do the pairs on the house.

Yes.

A little bit of both.

Yeah, you need an emergency fund for the house because as a landlord, one of the things you're going to discover is owning real estate's not cheap.

And so you're going to have to have some, what we would, in business, business we call it retained earnings in Ramsey

talk we call it an emergency fund right where you've got some money set aside so

when the water heater goes out you've got to fix it. You got a tenant.

...