Savannah/Rincon · Member since 2018 · 25 posts · 2 votes
How comfortable is everyone with leverage? How much cash reserves do y’all like to have in case of emergencies?
I'm just getting started. Im under contract on a duplex. I work full time currently and make good money but currently my school loans are killing my DTI to get a conventional loan for the next two years (until I own my first property for two years).
Just trying to plan going forward for each property I get-Capex for roof/hvac and two months rent in reserves is what I was planning on before I get leveraged with a new property.
@Joshua Kohl if you want to grow your rental portfolio, you have to be comfortable with leverage. I dont know that I'd be happy at 90% leverage, but I aim to be in the 70% range to in the beginning. I reserve the greater of $5000 per property or 6 months PITI. That will cover nearly any major capex item or easily pay for an unexpected vacancy.