How much in the bank before first purchase?

[Aaron Pike]

I just joined BP today and very excited to interact with the community here. I am sure this question has been posed before (I searched recent forum posts but didn't see exactly what I was looking for). 

How much did you have in the bank when you purchased your first property? AND, looking back do you think you were too conservative or too risky in making your first purchase?

My stats (no laughing):

Cash: 40K

Retirement: 70K (403b, Roth-IRA, SEP IRA)

No Debt

[Bryan C.]

When I purchased my first property, I literally dumped every dollar I had into the downpayment. I did a 60 day withdrawal on my IRA's to make it look like I had reserves in the bank, but once the loan closed, I moved the money back to the IRA's. This is a common tactic done as you essentially get a free loan for 60 days. Just make sure you get the money back to your iRA's within 60 days.

At the time, however, I was living at home with my parents which was a nice safety net for me. In a worst case scenario, I knew I could ask my parents for help. So, even though I used all of my money, I knew I had a safety net if I needed one. 

Getting a 0% credit card APR for 15 months helped a lot as it financed all the rehab work I needed done. I was able to leave the debt on that card until well after I got tenants in my property and eventually paid that card down well before the 15 months expired.

Having a cash flow analysis of your own personal finances as well as the property is very important to make sure you do not dig yourself into a hole.