Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 3 years ago,

User Stats

6
Posts
3
Votes
Ethan Blevins
  • New to Real Estate
  • Chicago, IL
3
Votes |
6
Posts

First time home purchase.

Ethan Blevins
  • New to Real Estate
  • Chicago, IL
Posted

Hi all, I am 22 years old, graduating college this December. I am planning on being in my area (Central Illinois) for about another year and a half.

I love the idea of house-hacking (I will definitely be doing one). If I could get any insight I would greatly appreciate it. I currently rent for $450 per month with two roommates also paying the same. So, I know rent by the room is allowed in my area as this is a college town. As far as cash reserves after the purchase of the home, I am not quite sure what a good target number should be. The first home I purchase I do not plan on selling after I were to leave this area as renting to college students would be my exit strategy from the home. My problem arises in that I do not have a lot of cash saved up. Only a few thousand dollars. 

I could most likely put some money down in a FHA loan and get a mortgage, however I worry that depleting my savings would put me at a high risk of not having cash for needed repairs should something serious need replaced. Does anyone know of a good target number to hit in reserves? Say you put $3500 down on a home for ~$120k how can I estimate the cash I need to keep in reserves for repairs? Does this soley depend on the state of the property or has someone developed a system to estimate what additional cash they would need per value of home?

There are many questions throughout my post here, so I appreciate any responses at all. I have been listening to the Bigger Pockets money podcast and Bigger Pockets real estate podcast for the past year and a half, and I am ITCHING to buy my first home and start my real estate journey. 


Thank you for taking the time to read my post! I have notifications on so I will do my best to respond to any and all responses!

Best,

Ethan

Loading replies...