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Updated about 6 years ago on . Most recent reply

How much cash do you prefer to keep on hand?
I'm in the process of cash-out refinancing a property, as well as another come September. Small timer here, only 2 investment properties plus by home.. just trying to figure out how much cash I should have on-hand ready to deploy for my next deal when one comes along, OR in the event of a market downturn I'd want to be able to act. Is there any rule to go by? Like % of total assets, is it based on your market you're looking in? I'm not sure what I should be aiming to keep liquid in a paltry 2% savings account while I'm in limbo here.
Any advice appreciated, thanks!
Christian
Most Popular Reply

I think it depends how you are buying. Someone using hard money will have a different amount of deployable cash than someone buying turnkey conventional properties. I was using hard money so I’d keep my closing costs, down payment, 20% of rehab costs, and holding costs all before purchasing. For me, that could be anywhere from 40-70k