Reserves (how much is too much)

[Joshua Strickland]

How much reserve capital do you keep in place for your STRs? Specifically when scaling. 3-6 months per property or less once you have 4-5 properties? I’ve typically been conservative, but 6 months reserves for 4 properties is a nice down payment. 

[Bruce Woodruff]

Originally posted by @Joshua Strickland:

Do you include your credit lines as potential reserves? For example if I bought another property and my bank account was sub $10k or so, but had $50k+ in credit card/personal loans I could use? Include the $50k in the reserve fund?

I do, but YMMV.....Debt scares the H out of me! If you feel confident that your income can 'comfortably' cover the debt then it is your friend and another source of funds. If you (generically speaking) are skating on the edge all the time, then debt can kill you.