Where do we keep the piles of money!?!?!

[Joshua Hively]

We always talk about putting money aside for things like vacancies, CapEx, repairs, property management and such. I would love to hear the different opinions on what people are actually doing with said funds. I can see putting aside the money for repairs and CapEx to a certain amount . With a single property this seems pretty straight forward, just an emergency account. But how are folks managing this with multiple properties. At some point it seems that there could be a lot of funds tied up and not working for you.

[Ned Carey]

The money is not just sitting there - it is reducing risk. That is not a poor use of funds.

I have an account that I put away 1/12 of the amount needed for taxes and insurance every month. That account goes back dowon twice a year when those expenses are paid. 

One possibility is see if a bank will give you a line of credit if you open a CD with them. We plan on getting a line of credit using some free and clear properties for collateral.