How Much in Reserves?

[Zachary Steidl]

Hello! I have a question that I don’t hear many people discussing! Maybe some of you can share your two cents.

When purchasing a property how much money do you make sure you have in reserves?

Should you have 10k or 20k sitting on the side? More or less? I know it most likely differs by the investor but I’m curious to hear what you guys are comfortable with!

[Scott Passman]

@Zachary Steidl Personally, I like to have at least 6 months of rent in reserves.  Keep in mind, that is in addition to the money that is being budgeted for vacancy, repairs, cap ex etc.  The reserve funds would be for things such as unexpected major expenses that exceed the current funds for cap ex or if my property were to experience a prolonged vacancy.