25K Reserves Funds Gone--POOF!

[John Thedford]

Just wanted to stress the importance of reserve funds to new investors. Most of my investments are newer units 2000-2006. Due to lack of building since the crash, a 2006 unit is almost considered new construction. There are not a lot of new properties that were built between 2008-2013. In three short months almost my entire reserves are gone! New roof. Repairs. New A/C in the morning, etc. Having reserves has kept me from needing cash and not having it. Repairs often won't wait. I felt pretty secure having 25K put aside. It ALL went away in three months. Next month tax bills arrive. If you don't have funds put aside you can BET you will need them at the worst possible time.