All Forum Posts by: Kyle Kline

@Kyle Kline - I agree with the previous feedback. It is important to be cash heavy in real estate hence I would grab from the line and have a strong cash position if I were you. The main reason businesses fail is because they run out of cash hence having a strong cash position as a business owner is vital. Good luck with your investing! 

Hey @Kyle Kline, these are all great questions to ask and ultimately it will be personal preference. 

My preference was to have a large emergency account. I have had unexpected issues pop up way too many times in the last few years, and each time I was very grateful for the extra capital I had stashed away. We've replaced 5 water heaters in a single year, had plumbing stoppages that resulted in 3-5k worth of work, and even had to replace 1/3 of the pier and beam foundation in the house we're currently living in. NOT FUN, but we had the money to weather the storms. 

Today my wife and I shoot for 6 months' worth of spending in our personal emergency account and about the same in our rental property emergency account. 

Hope this helps

Analyze markets, analyze trends, and exercise a strong sense of financial acumen.  You can beat the 1% rule.  I started purchasing investment properties summer of 2023 and offered on my 8th property this morning.  Sound money decisions, planning, eliminating wasteful spending, and having a team are all critical aspects needing attention when you’ve made the decision it’s time to expand your financial horizons. 

@Kyle Kline are you thinking of this as a longer term transaction? Generally these are for short term cash needs as you can see rates can become very high.