Reserves needed to buy five more houses
Isn't it usually 6 months payments for each property you own? I ask because I'm considering selling two of my houses and using the proceeds to buy 5. I have about 200K in cash on hand that I'm not touching, since I'm just using the proceeds of the two house sales, so I SHOULD be good to go, but still worried that this may not pan out. I'd owe roughly 1.8 mil, let's say 2 mil at this point if I did this. With monthly payments of about 13.5K between all the properties including the ones I own currently and the five I plan to buy, which pans out to about 80K in reserves.
Also, perhaps buying a couple of four plexes would be a better bet if it does become an issue? I could buy some decent four plexes for 1.2 mil with 25% down non owner occupied, and still have cash left over from the other two sales for a rainy day/market crash.