We're in a very difficult economy right now. Investors have to take seriously how quickly things could change. You could lose a tenant and have a vacancy for six months before any tenant is ever interested in your place. How will you survive that many months of mortgage payments? What about the unexpected leak in the roof? How will you repair it?
It's simple. Cash reserves.
The important thing to understand is healthy reserves not only protect you from serious problems, but they also allow you incredible peace. They are absolutely necessary. As BawldGuy states, "A generous reserve account is not merely an option. In no way is it a luxury. How long can you go without sleep?"
Get serious. You need to face the reality of our economy and protect yourself and your investments.
Tuesday's Tip: Protect your cash flow. Get reserves. They're in.
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