How much cash reserves needed to start?

[Stefan Forsberg]

Howdy,

Just curious as I am sure this varies from location to location. Given the current lending and credit climate, how much cash reserves would you consider enough to start a business flipping homes?

Would it be 20K, 50K, 100K?

Here in Dallas, TX there is plenty of homes in the 75-125K range (ARV) which I consider my target market. Several of these homes can be had for 15-30K needing an additional 15-20 in rehab costs.

I can't help but think that one should be able to be successful starting a business flipping homes with as little as 20K with these circumstances.

I understand that one could probably only do one deal at the time to start with and that you would risk to loose all of it with that small of a reserve.

What say you professionals? How much did you start with and do you wish you would have had more or less cash when you started?

Does it not hinder (or at least slow down) the process of learning to use other peoples money when you put in too much of your own cash in the beginning?