Buying my first primary / rental home

[Kyle Cuppy]

Hey Bigger Pockets community. I need some advice...

I am looking to buy a single family home that has 8 completed bedrooms. The house is unchanging rent at $500 when it should be $575 to $625 and this price is all inclusive. The basement is unfinished and there is opportunity to create more bedrooms in the future if the house was fully completed. My problem is that I have $120k saved, how much of your savings would you keep on hand based on this short description? I am thinking keep $25k on hand and I would have to put the rest as a down payment.  

I am trying to get an purchase offer on the table by the beginning of March. Any other advice or thoughts would be greatly appreciated.