I would recommend you have a 12 month reserve cushion for your first deal.Do your homework and take your time and you can make a lot of money in this business.Good Luck

We focus on A/B neighborhoods where rents will continue to be strong, we make sure to have a good cash on hand cushion in case of emergencies, we always keep 30% equity in a property and financed with a fixed rate and we always buy low.

. $70k isn't as much money as it sounds, so I would hold on to the $25k as cushion and work on paying off the debt, and live in the cheapest place I could that didn't endanger my life or give me bedbugs.

I would recommend pulling your down payment out from that property if you can, getting conventional lending on this next property, and save your money to give you a cushion while the cash flow from the other properties builds to create a reserve for repairs/Cap Ex.

I the market is going to tank a bit more during that time anyway... which is why I want REO at deep discount (cushion) - my lease is almost up and I need to move closer to work.

@Kyle RobertsonIf you have doubt than add some cushion to your situation.

With permits, landscaping, and some cushion that seems to put you up near a 100K remodel if you're going high end.

Orrrr, will tis Look like a good and safe deal to them ( so therefore they will hopefully be more inclined to do it ) , because ..... even by them loaning me ( adding it to my loan ) $20,000 , they will still have the Max LTV cushion that most Lenders like to keep the selves at Thanks so much .

Then subtract your desired proft and I would also subtract a 15% cushion since this is your first one.

I agree with everyone's standpoint as well...at rents annually of about $36k and purchasing at $375k it is not a good deal, because you barely have any cushion for risk, and if you have a loan, you will be negative cash flowing.