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Updated about 5 years ago,
Cash Reserves for First Deal
I am preparing my finances in hopes to purchase my first buy and hold Single Family Rental in the next few months. My goal is to purchase as close to a rent ready property as possible that will require minimal repairs. (no more than $5K)
What are your recommendations on how much cash I should have set aside incase of emergencies, repairs, vacancies?
This cash would be in addition to the cash I will use for the 25% deposit, home inspection and 5% closing costs.
I am planning to use a property manager and save all cash flow, along with the set aside costs (cap ex, maintenance, etc.). but this will take a while to build up so I want to make sure I am prepared for the worst case scenario.
Thanks,