Cash in your investment accounts

4 Replies

Alright BP.. I recently saw a thread on this and cannot find it anymore so I’ll re-ask the question just out of curiosity and because I think it’s pretty fascinating seeing everyone’s game plan... For each buy and hold property, how much do you keep stashed into your bank account before dipping into it for uses outside that investment property? Do you allot a % or do you save up to X amount? Obviously it depends on any upcoming, planned expenses as well! Tell me your game plan!

@Dawn Curry - I like to make sure I have 6 months of PITI for each property to help with any conventional financing I get.

Outside of that, I generally put 5-10% aside of capex. I don't put aside anything for maintenance as I have enough properties and cash flow it all evens out for me at the end of the year. I do usually budget 10% for maintenance when I analyze deals though. 

Great topic. 4 months of my mortgage payment, insurance and taxes on seems to work for me. I add extra for upcoming cap-ex.

Okay just for an example.. if my PITI is approximately 1k.. you’re saying that once you hit 4-6k in your bank account, you’re taking next months cash flow for yourself, another deal, etc?

What if a heater goes in the mid of winter? Or if a pipe leaks and you have to tear out entire floor? You’re saying 4-6x your PITI would leave you with enough cash on hand to get it done... without the chance of vacancy?

If the PITI are as low as the $1000/month example add $5000 extra on top making it $10k.

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