How much cash should I have on hand per door?

[Alec McGinn]

I’m looking to buy my second property and I’m wondering how much cash I should have on hand in case of emergency? Obviously I factor in vacancy and maintenance when I calculate cash flow, but how much do you like to have on hand per door in case troubles arise?

[Mike S.]

You never know what sort of problems are going to arise. I've built my emergency funds in a few different ways - cash on hand, LOC from investment property, and built my credit so if I can't access my cash, I have the ability to use my credit. I also do my own property management, which may or may not be the best solution these days... but it allows me to sleep at night or not haha..

Write a list of what could happen and what some of the costs that could be and know what you are and aren't comfortable with.  Everyone has different risk factors.

Tree goes through roof, flood in basement, pipe burst on second floor, window breaks in dead of winter, furnace stops working, washer dies (had it happen to me second week new tenants moved in)