Question on reserve funds

[Barry Harsa]

Hello, I'm just starting out and looking to buy my first property. One of the things I haven't found an answer to is, should I maintain an "oh ****" fund? Meaning a fund to cover any unexpected cost that may arise and when you're new to this arena might kill you if you're not prepared. I have been thinking an initial reserve of say $5,000 would be adequate, but I'm not sure. What would those of you, who are more experienced suggest? Is this fund needed, what would be a logical amount to set aside for those of us just starting out. I do realize it depends on the property one is buying SF, MF, etc. and with that in mind any input would be appreciated. Thanks.

[Jon Holdman]

Freddie Mac's guildeline once you have four mortgaged properties is six months PITIA (A-anything else, like HOA) for all properties. I think six months rent is a bit better. You want enough that a major, sudden expense (like my $6200 sewer line) can be dealt with quickly and painlessly.