Updated about 15 hours ago on . Most recent reply
Cash Reserves For Rental Properties
Hello Bigger Pockets! I’m new to real estate investing as I moved into my first house hack ~1 year ago.
I would like to know people’s cash reserves strategies. What is a good amount that you’ve found works in cash reserve before investing into an additional rental property?
Most Popular Reply
- Rental Property Investor
- Durham / Raleigh (Triangle), NC
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Hello @Zach Anguiano - At the start of my REI journey, I had access to both cash and credit. I had about $50K set aside and used $18K of that as down-payment for the purchase, and another $9K for the rehab. I was back up to about $50K on-hand when I bought the second one 6 months later. But I also made use of 0% interest financing for things like HVAC and flooring - to preserve my cash and let the property pay for its own rehab expenses from the rental income. Still today I use cheap credit when available, even when I have the cash.
- Jonathan Taylor Smith
