Personal Finance Question, with Real Estate Involved

[Landon S.]

I was wondering if anyone had heard the rule of not spending over half of ones' savings on anything if you have no debt. I am graduating from college in May 2013 and already own one house jointly with my parents. I have been renting to three roommates for three years; their rent paying all payments and expenses. I want to see what BP members think about if I am in the financial situation to be able to invest half of my savings into another rental property at this time.
I can give more information if needed.
Thanks for reading and I appreciate honest opinions.

[Kelly N.]

Landon,
Sounds like a great situation to be in, and you should probably go for it!

What were you saving for if not to invest? I'd aim to keep 3-6 months (depending on your tolerance for risk) of expenses in the savings account, but other than that I'd go for it! We're in the process of buying a second rental house (closed on the first in January) and that'll wipe out a considerable portion of our savings, however it's a great opportunity and we still have the 'safety net' in the bank, these two cash flowing properties, and a steady income.

Good luck to you!
Kelly