CalculateRealEstateROI

Risk Management

How much cash reserves should I hold?

6 months PITI per property minimum; 12 months on value-add and STR.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

6 months PITI per property minimum; 12 months on value-add and STR.

Expanded explanation

Lenders require 6 months. Smart investors hold more. Reserve depletion during a downturn forces forced sales at the worst time.

Examples

  • 10 properties × $1,200 PITI × 6 months = $72k reserves.

More Risk Management questions