How much money should I have after down payment?
Hello all,
I am looking to purchase a multi-family apartment building, and I am wondering how much cash I should have put aside for closing costs, and any other issues that may pop up. I want to ensure I will have enough capital to fund my deal, and keep it operating if worst case scenarios occur. Obviously the size of the building matters, but we can talk percentages. Or use an example of a $2 million dollar property with 500k down.
Thank you
Most Popular Reply
Hey Johnny!
The lender (if using a lender) will usually require a certain amount of money to be put aside in escrow which can range from lender to lender usually 6-12 months of expenses. If you're wanting to put more in reserves, I usually keep 6 months per property then add capex into the account as time goes on.