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.
Buying & Selling Real Estate
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 almost 7 years ago, 02/23/2018

User Stats

231
Posts
221
Votes
Colin Reid
  • Investor
  • St Petersburg, FL
221
Votes |
231
Posts

How Much to Keep Liquid?

Colin Reid
  • Investor
  • St Petersburg, FL
Posted

Hey, guys. I want to know how much money you keep available for contingencies on your SFR rentals.
I have two SFR's, with a third (current residence) to be rented within a year. With the two rentals, I've never taken a dollar out of the business, with the exception of repairs and maintenance. I don't manage them myself, and just stack up the cashflow for now. They each have about $17k saved from just cashflow. Rent check goes in, mortgage comes out, remainder sits. That comes to 18-24 months of mortgage payments for both properties, if they were vacant.

I'm looking at a possible cross-country move in a year, so I'm in cash-savings mode, and not looking to invest in property until then. At that point, I'm planning to house hack a multi-family.
The question is, how much of my roughly $34k (plus another year of cash-flow for each) do I need to keep in the properties for contingencies (cap-ex, minor maintenance, etc) and how much is available to put toward a down payment? Keep in mind, I have savings outside the business that I'll also contribute to the down payment, but this isn't about the amount I can put down, it's about how much to keep in reserve for the properties.

Thanks,

Colin

Loading replies...