Investor · New York, NY · Member since 2020 · 91 posts · 53 votes
Hi All,
I hope you are all doing well and staying safe.
I know the idea that you don’t need lots of money to make money, but as I’m reading and researching more about different investment opportunities, I began to think: How much money do I REALLY need to begin?
Of course, you need to have the money for a down payment (either your $ or OPM), but my main question is, how much do you need to have in reserves? I properly allocate a percentage of the overall rent to expenses like CapEx, vacancy etc, but on top of that, how much should you have set aside in order to sufficiently cover any unexpected expenses.
Cypress, TX · Member since 2016 · 137 posts · 119 votes
6y
@Jason Appel Every strategy and market has it's own basement floor, so this number could vary wildy and widely depending on what you do, and where, but I would generically say $15k to $25k in starting funds gives you at least some optionality of opportunity. Sliced out, probably $15k transactional and $10k reserves. Might not be in your backyard, but somewhere in the US, that should get you started with a few strategies.