[Calc Review] Help me analyze this deal

[Account Closed]

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[Simcha Davidman]

Originally posted by @Account Closed:

I am not sure how I feel about that yet, so I have played it safe by having the reserves I currently do. I think it will ease my anxiety until I feel comfortable with investing and things begin to go as smoothly as possible.

That right there is super critical! You need to define your comfort zone.It's very, very rare that an investment which you think is past a certain risk threshold is worth your overall well being even if it might be more financially lucrative. And you may or may not expand your risk tolerance with time and experience - there is no right or wrong answer, just so long as you're progressing.

And the same would apply to using "all" your capital to invest instead of having a reserve. It is not necessarily the right decision, and even if it could be, there are ways to do it smarter and ways to do it in a more risky manner. For example, if you had equity in a home already, you could open a line of credit which would presumably be more than whatever reserve you have set up now. If you needed to tap into something which was greater than cashflow, you could just cut a check or use the debit card or however your bank would handle it. It's like having the reserve without actually having it. But, don't forget to consider the interest rate you'd have to pay on anything used, what your plan to pay it down would be, and the alternative rate of return you'd get by being more invested without actual cash reserves.

One other point. It might be beneficial to post a little blurb in your profile about what you're up to and include your location, so that other people in your city/town/whatever can find you. Not sure if you're aware of the keyword notifications, but you can include cities and towns so that whenever a post mentions them, you'll be notified. In that way, you'll start to see some of the players near you. For contrast, just because you're on the East Coast does not mean that I would think to reach out to you for any location-specific deals or details, because I don't know where you're from.