And if you have no cash cushion for bad renters you have no business buying them IMO.

Having five cash flowing properties gives you a cushion for times when you have vacancy or big maintenance issues.

Or a LT hotel.Alternatively, I'd wait for a big snowfall so when you throw them out it'll cushion their fall.

The residential landlords with max debt as mentioned that own 1 to 2 rentals and DEPEND on that small cash flow as a cushion can be in big trouble.

You may have to tighten your criteria to add some cushion and search a little harder, but if you find a good deal...why wait?

Both Roofstock and an independent appraiser valued those properties at $450,000, and we can't borrow $200,000 to pay off the short-term mortgage, purchase the property we have under contract, and keep the rest as cushion and operating capital.

Build enough cushion so that even if you do go underwater, your reserves or cash flow allows you to weather the storm. 

This shows them all the money going in and out of the company and how much of a cushion there is for unforeseen circumstances.

If you are flipping or building to sell right now then yes you need a 30% cushion but thats a different strategy and conversation. 

Their contractor quoted $30K and we added a $20K cushion but the actual repairs are over $100K!