Where do you keep your contingency funds?

[Seth C.]

This is my first BiggerPockets post as a new investor. I am curious, what types of accounts/investments are people using for maintenance/repair funds and/or rent deposits? Are there any rules of thumb in terms of percentages of reserves requiring immediate liquidity, 3 month liquidity, etc?

[Sean Ploskina]

Rarely have the major expenses been able to wait.  Pipes burst in the front yard, Surprise inspection results from Section 8.  Tenant wrecks a unit.

Your reserves should be held in a relatively liquid format.  The returns on a CD are not worth the time a unit sits empty because of disrepair or damage.