Pre-qualified for a property, will cash flow

6 Replies

Able to get the home, which will have $200 after PITI. However, if I do this, all of my reserves will be depleted, meaning no funds for "what if costs". Do I step out for the experience and to get started, get a line of credit to cover emergencies, wait for "something better", etc?

Do you have good credit? Could you take out a credit card and use that as an "in case of emergency card"?  

@Eddie Bridgett Jr - It depends. If the property is turnkey i.e. fully rehebbed with all major items like roof, plumbimg, electrical and mechanicals etc. updated you may need very little cash reserves at least initially for a few yrs so you mighe be ok. Having said that I would recommed having some cash as reserves or have way to pay for things in case if something comes up with the rental or in your personal life for that matter. You dont wanna be in a situation wih owning a rental producing $200/mnth in cashflow but eabsolutely no money in the bank for anything else if something comes up. At least imo
Originally posted by @Eddie Bridgett Jr :

Able to get the home, which will have $200 after PITI. However, if I do this, all of my reserves will be depleted, meaning no funds for "what if costs". Do I step out for the experience and to get started, get a line of credit to cover emergencies, wait for "something better", etc?

 Whats the situation with the house? Is it in a high risk area? If yest the likelihood of emergencies is much higher than a suburban bungalow of some sort.