I also keep the total amount of all my insurance deductibles for each property in reserves in case emergency comes up.

Once my emergency fund is set and my retirement contributions are maxed out, I will happily co-invest in my Funds because that'll be the best place to put my extra money.$100k is a reasonable investment for a JV for those that do that.

I've never had an emergency like this take more than a day or 2 to correct, even a replacement AC unit on the roof with a crane service needed can be arranged in a couple of days.

The emergency cleanup/mitigation/pipe repair was completed by March 3d and they quickly asked for authorization to represent me in insurance payments which I declined.

But most of the people who were being foreclosed on were home owners not investors.So to protect yourself, make sure that you can cover payments when vacancy goes up and make sure you are cash flowing enough to cover expenses still if the rental prices dip a little and save some of the cash flow for an emergency fund - maybe 5k per unit. 

Such a PM will be pricey, but at least you will have someone local who can handle emergences in the middle of the night without having to lose sleep or possibly jump in the car to drive 5-6hrs. 

This show is packed with insight from AJ, including: How a loss on his first deal directly led to millions of dollars in later profitHow to find underperforming real estate dealsHow he made $13,000,000 in equity from an old Kmart buildingAnd the medical emergency that put his real estate to the ultimate survival test while AJ fought for his life (this story will shock, amaze, and inspire you!)

Picture a problem on a nice winter Saturday with the wind chill -17 and you’re getting an emergency call at 2am.

I just personally can sleep better at night with a fully funded emergency fund early on!

I told them it wasn't an emergency that evening.