Then in addition, your lender may require 6 to 12 months of reserves and then in addition, you will want to have cash reserves in the bank after close to pay for unexpected expenses and or capital improvements to the property.Bottom line, figure 35% to 40% total so $350,000 to $400,000 for every $1,000,000 in purchase price.The primary way people get hurt with real estate investing is to get over leveraged and under capitalized.So when you buy, be sure you have ample cash reserves in the bank.Hope this helps.

I understand the seller could foreclose if payments are not being met, but sometimes I think a seller would have some reservations.

Looking for a LTR multi (potentially SF is #'s work) something we can add a bit of value to, build equity w/ cash flow to cover reserves rather than the primary driver.

Rentals continued through the fall and winter, and we're well ahead of pace with 2021 reservations (About 50% of my gross revenue projection for 2021 is booked already.

You have to see reservation spreadsheets with net nightly rate on it.

SpaceX's reserves and Musk's personal fortune are both going to fund the initial port development.

Costs Non-recurring Closing costs - 6% of purchase priceMonthly  % Vacancy and Credit Losses - 5-10% of monthly rent Property Management Fees - 8-11% of monthly rent Real Estate Taxes - actual from folio # Repairs and Maintenance - 5-15% of monthly rent Rental Property Insurance - 2,000 Homeowners/Property Association Fees - 0 Capex reserve - 1% of purchase price Utilities  Water and Sewer - tenant Gas and Electricity - tenant  Garbage - tenant Cable, Phone, Internet - tenant - tenant

I was just curious what you found was the best way/ how you prefer to keep or store cashflow and reserves for your rental properties.

@Marlia StoneI think you are underestimating your expenses; make sure to include vacancy, repairs &maintenance, capex reserves, insurance, taxes, etc.

I have a significant amount of cash saved up, but I would prefer to maintain my reserves for all the surprises that come with your first investment.