Welcome to passive real estate investing, the show where busy people like you learn

how to build substantial passive income while creating wealth for the long term.

And now here's your host, Marco Santorelli.

Hello my friends and welcome back. Now here's your host, Marco Santorelli.

Hello, my friends and welcome back to another episode of Ask Marco

where I answer your investing related questions.

Today's question is a cool one, and it comes from Clint, and he asks the basic question of how much

cash should I keep in reserve for my rental properties. This is a good question

it hasn't come up in a long time, interestingly enough.

Maybe I've talked about it on previous episodes,

and in terms of my general rule of thumb.

I'll share that with you here in a couple of minutes,

but let me read his question and give you some comments before I get to that.

So Clint says, hi Marco, I've been listening to the podcast for a few months now.

Thank you for all the great info and you're welcome.

My wife and I own a single family rental home in Kansas City and

our starting plans to acquire three to five more properties in Kansas City within the next year and plan to continue expanding our portfolio further after that.

I've read and heard a lot of various ideas on how much should be kept in reserves to weather unexpected hard times or vacancies.

And I'm curious to know what your take or philosophy is on that.

And how do you scale that reserve as you acquire more properties?

For example, if I decided to hold six months of reserve on our current single family residential

property, it seems like it would be a significant chunk of idle cash if I carry that same logic to five to ten plus properties.

...