How do you store your capital and reserves?

[Dominic Scheck]

Hi, friends.

Do you keep capital and reserves in a savings account? In mutual funds? Obviously reserves and capital need to be in a liquid vehicle, but do you really keep $10K, $50K, $100K+ in an account earning nearly 0%?

I have one duplex and am looking for my next small multifamily. Every month, I put ~50-70% of my W2 paycheck into robo-advisor investments (Wealthfront and Betterment) to save for that next deal. I can transfer funds in or out of those accounts in a few days. I choose a conservative stock-bond mix so that a Wall Street downturn doesn't burn me too much when I need the money.

I also keep about $2K in cash to handle unexpected repairs, but I'm uncomfortable having much more napping in the bank. 

What do you do? I'm especially curious to hear how small and large investors differ. Thanks!