How much cash needed beyond acquisition of MF building?

[Joshua Fass]

BPers,

Is there a rule of thumb about how much cash you should keep on hand, beyond the aquisition cost? As I am drafting my budget for my first MF Apartment acquisition, I want to make sure I am not over-leveraged.

Strategy will be to acquire a MF apartment building (20+ doors), Class C, with modest investment needed to stabilize the building, make repairs, value adds. I will be utilizing a PM company for some of the operational needs. 

If I have $600k to leverage, what would the right mix of down payment and cash for stabilization, etc. 

• $500k down on a $2MM property, keeping $100k in the bank?
• $400k down on a $1.6MM property, keeping $200k in the bank?

Any guidance is greatly appreciated,

Josh