Does anyone have any general requirements for when to expand?
For example how much money should you keep on hand per rental property in order to be comfortable to handle repairs?
What should your overall debt to cash ratio be before you are comfortable with purchasing another property on a mortgage?
How much emergency living/life cash should you keep on hand to be safe?
How much should there be (if any) in a emergency realestate slush fund on top of your set aside basic amount of cash per property?
Any suggestions on things like this? I want to do this properly.
I own 28 rental properties and a beach house. Of these 29 properties, about half have undergone full (i.e., >$30,000) renovations in the last 3 years. The others will need a fill rehab at some point once the current tenants move out. But I'll be able to increase the rents a good 30-40% more once I do on all of those.
From that, I try to keep a minimum of $50,000-$60,000 in the bank at any given time to cover major stuff if it comes up. I don't do a certain amount per property like some on here will advise. Plus, I tend to be less conservative that a good chunk of other investors on here. When you have as many as I do, my cash flow is around $5,000/month so I can always use that cash flow to pay for repairs in a given month.
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