How much in cash reserves? (4plex, FHA, househack, Akron OH)

[Erik Azevedo]

Hi everyone.

I'm looking at a fourplex listed at 159,900 as a househack for my first deal.

I have limited cash and I need advice regarding how to come up with a sane/safe amount of cash to have left over after the deal is done for incidental things that will inevitably come up. This will help me determine what I will offer on the property.

Some details, if they help:

I will use the FHA loan for this.

(3) 1-bed 1-bath units rented at 425 a month, 1 is vacant (for me). Market rent for this type of unit seems to be around 600 so there is some room here.

The building is 100 years old. Which makes me nervous about unseen issues like asbestos, lead paint, etc etc.

I plan on asking the seller for all of the closing costs - I'm not comfortable with the amount of cash I'd have left over if I have to pay them.

I haven't seen the property in person yet so it's hard to say for sure, but from the pictures it looks to be in good condition other than needing some cosmetic work (paint) on the outside.

Do I need to have 15k sitting around just in case? Am I worrying too much?