What is your cash to mortage ratio?

[Jordan L.]

Is there a general rule? Should you have enough to pay off the mortgages if you have too? Or enough to cover all properties if they remain empty for a certain period of time?

[Sharad M.]

Originally posted by Bryan Hancock:

I’m talking about everything….securities, commodities, personal assets, derivatives, closely-held stock, access to lines of credit and private money, etc.

The more liquid you are in these areas the less cash you need to keep on hand. Note that many real estate investors keep lines of credit so that they have to hold less cash. Holding cash is “investing†in dollars, which has a terrible return. It helps you sleep better at night though!

Bryan,

I am a little confused. Where do you show access to line of credit on your Balance Sheet?

When you do access line of credit, isn't that really a wash between assets and liabilities and net to zero?