How much in reserve for house purchase after closing costs and restoration?

[Kristin Horowitz]

I was thinking . . . I'm planning on saving all my extra income to put a down payment on a rental property in the near future. (And I have never been a homeowner.) I realize that it will likely need repairs and improvements, but I also realize that issues come up. Do you guys have a magic reserve number that you go by?

For example, if I have a downpayment of $12500 and an estimated improvement cost of say . . . $5000, that means that, with closing costs, I'm looking close to $20,000 needed to do the sale. But how much should I have in the bank before I make an offer, if I want to not have to dip into my personal savings/operations costs?

Thanks!

[Account Closed]

I like to have money set aside for minor and major repairs that can crop up. I like to have enough to reroof plus new HVAC on hand

If I had mortgage or any other payments I would make sure have at least six months on hand if not more .

An example of what can happen

Lets say it takes two months to get it ready to rent

then a month or so to actually get it rented

And two ,three months go by and you have to evict

then repair and get it ready to re rent ...