They reported their rental income and all expenses on Schedule E, and want to report the sale of the house on Schedule D and Form 8949.

I'm just curious how some of you experienced property owners determine how much liquid money to keep on hand for a given property, if there are important reasons to keep that money in a separate or LLC bank account, etc.

Save up more liquid for purchasing power in the next slump.

You want to find a property management company and manager that know they actual rental market and their focus is to maximize the rents, keep your property in great shape with the changing markets so if you ever need to liquidate, you’re not having to put tons of cash in to the property.

I’ve seen those type of transactions here in Cleveland come with penalties for selling quickly (e g <5yrs)....usually they want owner occupants in the property to stabilize the neighborhood. 

My favorite is the tenant that complained that the toilet was old and needed to be replaced because that was causing him to miss when he urinated and it was becoming a real pain for him to have to clean that up every time.

Avery Brewing Company is my favorite.  

Additionally I will take responsibility to secure long term financing on the property (with all of the investors guaranteeing the property) and then using the cash outs to keep acquiring more properties.I realize that all of the investors eventually want to get paid back which can be resolved through an eventual liquidating of the portfolio or refinancing the deal to pay off investors.Do any of you have experience doing this?

This property, for a long time, has not performed well financially and due to this my family is not holding many liquid assets.

@Mari E Desilva If the utilities are on, I’d do a full inspection.