How much cushion to build in is probably a personal preference you'll have to determine balancing your risk tolerance, worst case scenario management, the liquidity you have available to you that you've built into your model, and alternative contingency plans.Here are some ideas on how to structure your reserves and emergency tiers:Tier 1 - savings, checking, and personal property reservesTier 2 - capital expense reserves for rental propertiesTier 3 - lines of credit available via HELOC's, SBA 7(a)'s, personal lines, asset based LOC'sTier 4 - cash value life is a good alternative if you know how to utilize these policiesNot to be used in this exact order but each situation can vary.

The property Im interested in is actually the house I grew up in.

What part of Ca are these in? I

I am grateful for finding BP, as it has proven to be a wealth of information with a tremendous support structure built in. I

Otherwise, I did everything myself while guiding the owner along the way (on the docs she needed to turn in). I

I am just not sure which borough is better to invest in. I

If you sort the data you can have a vague idea of what price bracket the property you are interested in is, without the need to upgrade.

What I'm looking for is guidance on how to start and things like what is better to buy foreclosures or not and also how do I know when a house needs too much rehab and isn't worth investing in. I

The area I live in is not the area I plan on investing in, would that matter if I joined a local REIA?

@Jonny Lambert see this link for how to mention folks If you are just picking a market to invest in. I