I backed out of the contract and I have $1,000 in earnest money that is just sitting with the title company.

It's a 1960 property and needs rehab (not immediate) but over the years, sits on a septic and own water well.World has changed in 3 weeks, and US in last week.

Does sitting on several hundred thousand in reserves help protect a portfolio.

If it blows over in by Mid-may or so, I'll be fine, if it sits vacant for 6 months, I'll be in trouble.Curious what people think, thanks.

As the markets, both RE and stock, become more and more scrutinized, sellers will begin to move loans that they were once willing to sit on. 

The land it sits on can accommodate an additional building and I plan to erect a 6k SF metal building for commercial leasing. 

I want something where I can sit down with the seller and explain it section by section and not overwhelm them.I just skimmed through the standard Virginia RE Sales Contract used by RE agents. 

One tactic you can do though is borrow the money and let it just sit in your bank account.

Again, your return percentage might be lower, but when the renovation goes over by a month or it sits on the market longer than expected or seller wants a 75 day close versus 45, you aren't just watching money go out the door if you are all cash. 

Btw, my cash flow & payback assumptions include setting aside 5-8% of gross potential rents each month to cover capital expense repairs, so even if your home does need work once it is paid off, you have the cash sitting there in the bank ready to go.So I'm not as concerned with whether it is a triplex or a SFH.