Seed Capital vs. Reserves

[Account Closed]

What do you believe is an appropriate percentage of Seed Capital vs. reserves that you should have. For example, if you are buying a $100k house and have to put 20% down how much should you have on reserve (20% or more)?

[Jay Hinrichs]

@Andrew Johnson  undercapitalized landlords run real risk of going down the financial toilet.  I have personally witnessed it countless times... owning and running rentals REQUIRES reserves .

use an extreme case like Houston  Harvey flood.... 5 rentals all flooded no flood insruance.. 100k out of pocket to pay negative cash flow taxs and rehab to get them re rented..   if U don't have it you run the real risk of losing the properties altogether.