, emergency lighting, handicap accessible entrance, accessible bathrooms, etc

So, keep a good fund in an emergency operating account set aside for rehab-rainy days.

Then saving the extra money for an emergency fund as well as your next down payment is much more important.Also when you go to get the second mortgage the bank is going to care more about you having reserves (more cash or assets that you can easily make liquid) than seeing you have paid down you mortgage some.  

I enjoy the Urban Land Institute report: Emerging Trends in Real Estate®.

One 2 Bd apt. and two houses, 5 bed's each.Financing Approach:80% Bank20% 10% down payment10% seller financing - terms to be negotiatedAnnual Financials:-5% vacancy (the market is emerging and vacancy is very low - we know this because we own a 4-unit in the same area, purchased from the same seller)-Rent roll: $55,800 - can be pushed up by $4,800 conservatively after rehabbing-Property Taxes: $4,277 -Insurance: $1,619-Maintenance / Capex: $11,160 (projected - 20% of rents)-Water / Sewer / Utilities: $6,200-Property Management: $3,600 In summary:At purchase:-$55,800 gross income-$21,903 total expensesPro-forma:-$60,600 gross income-$22,529 total expenses We want to get your thoughts on this deal.

I recommend snowballing when you have a 6 month emergency fund in place and can easy pay all of your monthly living expenses.   

If someone calls with a real emergency I don't have to rustle around in the garage trying to gather up material.Leave a water T-wrench at every house you own (irrelevant if you're owning apartments except for the on-site manager).

Emergency fund (4 months or so)2).

When I say that’s all that I do, let me tell you what to expect in the life of a landlord and all that they do. 3 am Christmas Eve Tenants call-Furnace went out.I get up, phone calls made, emergency call, expensive triple overtime to the Heating Contractor, Tenant has heat.

I'd love to hear more about how to save for a downpayment, what sort of personal savings buffer to have, and what sort of reserves I should have for emergency repairs.