Don't forget to have a cash reserve!

[Cal C.]

One of the most important things you will need when investing in real estate is access to readily available funds to make emergency repairs. Emergencies will happen and often at the most inopportune times. These funds can be in savings, or they can be cash available on your credit card (definitely not recommended).

Pipes freezing and bursting, HVAC going out during a hot summer or a cold winter or an unexpected vacant house that needs lots of repairs are all examples of times when you are going to suddenly need to access cash FAST!

As you go along you'll get a feel for how much cash you need access to. But to begin I'd say at least $2,500 for the first house. Also just because in the first year or two you don't have any issues it doesn't mean you are not about to have two or three emergencies in quick succession. So please don't get complacent.