CalculateRealEstateROI

Risk

Liquidity Strategy

Holding sufficient liquid reserves to survive capex events, vacancies, and downturns without forced sales.

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

Core concepts

Minimum reserves

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

Tiered liquidity

Operating reserves + capex reserves + opportunity reserves.

Examples

  • 10-property portfolio: $72k operating + $30k capex + $50k opportunity.

Practical applications

  • All operating portfolios.

Common mistakes

  • Tapping liquidity to fund deals.
  • Confusing equity with liquidity.