Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Rehabbing & House Flipping
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 5 years ago,

User Stats

43
Posts
141
Votes
Robert M.
141
Votes |
43
Posts

How much in reserves for a flipper to get through a recession?

Robert M.
Posted

Experienced flippers who have weathered a recession well: how much is “enough” when it comes to cash reserves?  I see 6 months as a rule of thumb.  Is that accurate?  I’m assuming that this includes salary to self + carrying costs for all investment real estate.  I’m also assuming that those who have 6 months cash are not using hard money for their flips, but are instead using their own cash for the whole transaction and improvements.  Is that accurate?  Does that mean one can continue to flip and make money during the recession, even if supplementing with reserves as needed?  I understand that cash is king when the market drops (so more is better so that you can snatch up properties).  My question has more to do with getting through my first few years of accumulating cash and earning a living without putting my family in a bad spot if and when the market bottom falls out.  I recognize that no one knows, of course-just looking for recommended cash reserves from those with experience needing them!

Loading replies...