I’ve been doing much research and learning as possible for the past few months . I have saved a couple thousand so far but would do a lot better if I had a goal . Wonder what’s a good amount to save up before getting my first investment property (rental) knowing that it will need rehab plus enough to cover months of vacancy .
That's a question only you can answer... are you going to buy all cash? Are you just looking for a down payment with a mortgage? How much rehab are you prepared to do?
Then you need to start asking what are the current prices similar properties that you're looking to get in to and what contractors will charge for the work you're looking to do.
The dollar amount is a function of your market, not a set figure that's the same for everyone.
It all depends on your goal and strategy... if you're doing a traditional investment property, banks will want to see 20% down, and 6-months of reserves (including the new mortgage) available. It all depends on what kind of houses you're looking at, both upfront costs and rehab costs to determine how much you need available.
That depends on your strategy. Are you looking to finance a turn-key rental with a 30yr note? Or are you trying to purchase distressed and add value (repairs/rental income) to force appreciate?
If you have other forms of liquidity (Life Insurance, IRA/401k, business credit) you may not need to save additional capital at all.
You may want to consider keeping your money in your pocket. Find a money partner and a good deal, you put in the work and your money partner puts in the money. Today money is way easier to find than a good deal.
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