Chad, We decided to take a portion of our cash and pay off our first property over 2 years ago, and, quite frankly, all we have done since then is think about a cash-out refi as we have cash on hand for emergency fund but not enough for a big enough down payment for the 25% down required for our next property as we're looking at a more expensive purchase in a specific area next time.

I'm currently applying to medical schools so my time, money, and ability to take out loans is very limited, whereas my partner's are not limited to the same extent.

I replace every water-valve in the house (including the main shut-off) as soon as I close - under-sink valves, toilet water supply, laundry, water heater shut-off, etc - paying a plumber/handyman for a half-day of non emergency labor is much cheaper than an emergency call later.

The siding needed "emergency" repair as it was raining buckets from our side of the wall.

This sort of thing is one of the reasons to get the tenants' emergency contacts when they apply (or when they sign the lease).

Keep that spending diary.Dave Ramsey also says you should start with a "baby emergency fund".

In case of an Emergency.

I did an emergency entry Friday night and had several people clear out quick due to possible gas leak, really unrelated to her, just a good excuse.

She is also recently divorced, she earned a million dollars a year Realtor before the crash in Nevada, her divorce, ex... and the Real Estate bust left her with IRS debt and destroyed credit and she has financial obligations to college kids in the short term (PS - we met and moved in together before I inherited the money and while she was not working dealing with a medical scare- so no gold digging here.)However- we are sensitive to appearances and she insists anything I buy be in my own name and that if anything happened to her I could afford it on my own.

I had a good friend whose husband needed some expensive medical equipment while he was alive.