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Updated over 1 year ago,
Multifamily Upfront Reserves
I'm planning to buy multifam to house hack in the future. I'm curious about having upfront reserves ready. I want to mitigate risk by building a reserves cushion to have ready at the start of the investment and doing this will help me confidently scale.
I've been doing reading and like the idea of having 3-6 reserves saved upfront that would cover possible vacancy.
However, what about having Capex, maintenance repairs, renovation reserves (getting the home rent ready) reserves before buying upfront? Are investors really saving for these four factors all before buying? What are thoughts on creating a safety net before property one and then two?