My wife and I (newlyweds) are looking to purchase our first rental property in Victoria County. What is the minimum amount of money that you would ideally like to have in savings after putting down a 12-15% down payment on a home valued between $80,000-$100,000? We are targeting houses in this category that would require minimum upkeep.
Thanks in advance!
It depends. Are you living paycheck-to-paycheck and unable to handle emergencies? Are your personal finances under complete control?
I normally recommend saving the equivalent of six months rent. You can adjust that based on your personal finances. I can absorb up to $10,000 before digging into a credit card or other funds so I'm more lenient with my savings. If you are on a tight budget then you may want to save more.
Appreciate your feedback. We are able to save 10% each month and pay finances without any trouble. That sounds like a good cushion that will help me sleep at night ($10K).
If we are able to find a seller that accepts our down payment, how much capital do you recommend (in addition to down payment) keeping on hand for first year average upkeep? That's another obstacle we're trying to factor in.