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How much should I be keeping in reserves for each rental property?

When it comes to real estate investing, its not IF something comes it, its WHEN! That is why it is best practice to have a healthy reserve for each property so expenses can be covered WHEN they happen. Be prepared for it emotionally and financially.

How much is that amount? A safe rule of thumb is to keep 6 months of PITI (Principal, Interest, Taxes, and Insurance) or $10,000 in reserves for each rental property. Which ever is greater.

Pro Tip: Have a separate bank account for each rental property. Doing so will help establish good business practices and separate business finances from personal finances.

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