Is cash the only form of reserves?

Question

So I know that reserves are very important for longterm rental investing, especially for BRRRR. I have about 10k in cash and about $70k in stocks and another $10k in crypto. Can I consider my stocks and my crypto as reserves or should I solely rely on my cash? I'd like to leverage my crypto and stocks but I'm wondering if I need more cash to be able to safely do this.

Jill F. · Answer

I'd count them as cash, even if you don't want to sell them you can use them to secure a line of credit.

Carlos H DeOliveira · Answer

I think it's, you just have decide your risk tolerance for your reserve fund

I consider my stock portfolio reserves, the portion that I consider to be my reserves is invested in a very conservative mix aiming for a return of 4% plus close to 2% in dividends.

It's composed of TIPs, TBILs, some gold and some bonds. Even when the market collapsed, my portfolio was only down about 10% and it bounced back quickly.

Crypto is tougher just because the volatility, you can have 20k in reserves one day, and wake up with 5k in reserves.

Frank Geiger · Answer

I would consider it reserves ONLY if you are willing to sell the stocks/crypto at any time. It has to be relatively liquid. Could you have sold without a loss back in March? I like to keep these two pieces of my portfolio separate but it's up to you.

Dave R Ludolph · Answer

How much would you suggest? I can get single family homes in b class neighborhoods valued around 100-150k. I was thinking I need at least 20k cash in reserves

Joe M. · Answer

yes you need more cash

Is cash the only form of reserves?

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