CalculateRealEstateROI

Risk Management

How much portfolio liquidity should I keep at all times?

6 months of total PITI + insurance + 1 capex event per 3 properties.

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

Direct answer

6 months of total PITI + insurance + 1 capex event per 3 properties.

Expanded explanation

Liquidity is the option to act in downturns. Investors with reserves buy distressed; investors without become the distressed seller.

Examples

  • $120k PITI exposure + $25k capex events = $145k liquid.

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