Beginner investor's personal finance picture

[Ray Shaffer]

I am currently building a plan to start my REI business. I am curious as to what are people's opinions on debt, emergency funds and cash reserves before getting involved with an investment property?

I think credit card debt is probably the obvious category that needs to be kept a little to zero balance due to typically high rates, but what about auto loans?

Personal emergency funds and investment cash reserves, are they viewed one in the same? Is there a recommended amount that should be saved before taking on an investment property?

I am very eager to get started but I want to build the strongest foundation to avoid falling into any financial pitfalls. I appreciate everyone's opinions and advice.

[Chris Soignier]

@Ray Shaffer, welcome to BP. I used to be averse to all credit but my mortgage. Now, I consider the rate, terms, and what I'd used the funds for, regardless of what the debt covers. REI can be capital-intensive, and my debt is higher than I ever would have allowed it to go in the past, but it's funding investments that produce net gains. You're in my 'hood, so I'd be happy to discuss over coffee or lunch sometime.