How much in emergency fund

[Lavon Stoltzfus]

How much cash should I try to have as an emergency fund per property I own.

[Corby Goade]

Quote from @Lavon Stoltzfus:

How much cash should I try to have as an emergency fund per property I own.

 Obviously the correct answer is as much as possible, but not everyone can just put a year's worth of savings aside.

Reserves are generally for capex, and in my experience, the only true capex emergency is a sewer line failure, and you can mitigate that risk with a scope. Beyond that, you can repair a roof or hvac system infinitely, it's just a matter of figuring out when you are throwing good money after bad.

As we were ramping up and had no cash and very little cash flow, we saved $100 per door until we hit a number that was comfortable for us. We had a HELOC as a back up for any true emergencies. Depending on the asset class and your risk tolerance, that number will vary quite a bit. We basically try to keep enough for two roofs, which is generally a worst case scenario, having to replace two roofs at the same time.

Best of luck!