Cash Reserves

[AJ Golden]

Hey BP, I'm fairly new and trying to determine how much you should keep in cash reserves. My wife and I have two properties, a 2008 3/2 and 1986 3/2.5, both in Ft Worth, TX. We have not done any type of major capex on either of these two properties. Both are around $115k in value and financed around 75%. We have enough money to purchase another property, but want to make sure we keep enough cash in reserves. Is there a certain percentage of our property value we should keep? Or is there some other way to know how much to hold? Thanks! AJG

[George P.]

Most investors have no reserves the first few yrs ad they are trying to expand.  I had nothing even at house 20. Everything was going into the next house. 

As long as u can put it on a credit card, I'd never worry about it.  Is this a bad advice? Idk.. Worked for me.