Under Capitalized or Just Delaying Entry?
BP,
I am looking for any experienced investors who could share any rules of thumb on proper capitalization before a RE purchase.
For example, If I am looking to get a 80% LTV loan on a $400,000 property. What would be a good capitalization range.
I assume there must be some rule of thumb like [Purchase Price] * [%Down] + [Closing Costs] + [Some Safety Net] = RequiredCapital before purchase
Is there any advice out there for a newbie who fears jumping into a deal undercapitalized and being ruined by the first big expense while also trying to get into the game ASAP?
Thanks