I am in the process of working on my 3rd and 4th deals simultaneously. Both are single family homes that I will be renting to college kids. I also own two 3-family homes, one which I live in. My question is what do people normally like to have for reserves in there accounts. I have been thinking that 5k per house would be sufficient, but 3 of the houses also have new mechanicals, new roof, and new siding, so my capital worries are much less.
Any input would be greatly appreciated.
My LLC has a brokerage account which we put a % of profits from our flips. We do this for several reasons:
1) If we were to ever go over budget on a project we will have reserves
2) We usually each pull a % out during tax time
3) We conservatively invest the funds to keep working for us. We feel this is better than having all of our reserves sitting in a bank account
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