Cash Reserves for Scaling or P

[Calvin Watkins]

Hi All!

Just wanted to post this and see if anyone could advise me on total cash reserves that would be appropriate for different sizes of investing. I have been investing in buy and hold rentals for the last 5 years and am currently at the point where I am toying with what I need on cash reserves versus what makes more sense to pay down and eventually off. I know there are two schools of thought for paying down loans versus holding them with the cash as a runway. I would love to hear both sides of the discussion and currently think holding about 10% in cash reserves of the retail value of the properties held sounds like a healthy number. An example would be $500,000 Assets Under Management and having $50,000 cash reserves.

I am sure this number would change based on unit types being either SFR, Multi-family, Apartment Complexes etc. Please let me know what sounds like a healthy amount to hold.

Thank you!