How much cash do you recommend having in reserve for rental (SFH)

[Artur A.]

How much cash do you recommend having in reserve for rental (SFH converted to a duplex)? The house is old, 1916. The roof is new, and the furnace & AC is 2011.

[James Wenzel]

I always have a reserve of 6 months of expenses.  Stuff always seems to pop up, AC, Furnace could become an issue, electrical, pests etc...  Until you have 10 or 20 properties cash flowing, then its always best to air on the side of caution and have 6 months or so.  That should easily cover the AC, furnace, electrical or any other issue that might arise.  Also, banks will like to see that you have cash reserves of approx 6 months when you finance future properties anyways.