Do I have enough funds to purchase this 60k 5plex?

[Andrew Michaud]

I got approved at the credit union today. 60k purchase, 12k down, so a 48k loan. Plus 2k to 3k in closing costs. After all of those expenses I will have about 6k to my name. Is that enough? I have two jobs I make money from, and this property is a 5 unit all occupied bringing in its own cash. I see a 100% ROI after the first year. 6k enough set aside? Will have more as the months pass on and paychecks/tenant pay comes in.

[Sean Cassidy]

It really depends on what your tolerance for risk is, and how well you have calculated that risk.

Assuming the roof doesn't give up in 3 months, or a big old furnace issue pops up you should be ok. Also, do you have credit cards? I've used mine to bail me out of big repairs before when I didn't have the cash to cover.

That said, when I first started out my appetite for risk was much higher than it is now.