CalculateRealEstateROI

Cash Flow

Operating Reserves

Cash set aside to cover vacancy, repairs, and unexpected costs.

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

Plain-English explanation

Hold 6 months PITI per property minimum. Rookies skip this and blow up at first vacancy.

Examples

  • $1,200 PITI × 6 = $7,200 reserve per property.

Common mistakes

  • Counting equity as reserves.
  • Stretching to close and skipping reserves.

Related questions