How much liquidity would you say he should have to buffer his risk?

Best way to use it to avoid getting hit with the higher payment would be to set the payment up on a Bi-weekly and use the cash as a 'All cash" purchase.When you use "All Cash" on a purchase you can then get a "Delayed Financing loan up to 80% LTV to get the majority of your capital investment back into liquid reserves even on a investment.

Lots of headwinds facing real estate, like the following: Inflation Consumer Debt Lack of consumer liquidity-- renters don’t have first and last month’s rent, let alone a down payment to buyOwners interest-rate lockedOversupply of class A multifamilyStagnation of rent growth on assets aggressively underwritten at acquisition Maturation of term debt combined with stagnant rent growth against a backdrop of rising debt rates =investors unable to meet basic debt coverage service ratios on refinance Market normalization forcing operators and investors to rely on market fundamentals (recently) forsaken, while prioritizing expediency of deploying capitalInstitutional and local investors are both frozen by volatility and cost of capital and debtAll that being said, we feel good about B and C class assets we focus on and the markets we are in. let's connect soon 

Hi Grant, some things that might be helpful to learn more about the firm/team:- If/why they target a certain asset class- Have there been any problems with liquidity in past deals?

I'm looking into multifamily (duplex & self landlording) in my local area to get started, but my tri-state area (CT/NY/NJ) has a high entry price point that I'm concerned with over leveraging myself and losing liquidity on my first deal. 

The other 1% of the time people, who are liquid, can pay the loan off by doing the same thing: request a payoff statement with wire instructions and then send in the wire.

Building this foundation of goals and action plans will provide the structure and framework necessary for success.It seems you've mentioned feeling hesitant to take action and also facing liquidity challenges.

I do have some saving and assets I could liquidate, but I prefer that as a last resort.

I would look for Real Estate markets that allow entry point in 160k-250k range, it allows you to liquid your asset if it happen to be the case in future. 

Those are less liquid and less control.