Cash Planning Beyond the Investment Property Down Payment

Investors buying 1–4 unit non-owner-occupied properties need to evaluate the cash available after closing alongside the amount required to complete the purchase. In his October 7 article, Don McClain, Founder of Medro Advisors, sets out a framework for separating the purchase price, closing expenses, planned operating needs and a contingency reserve. Applied to an investment property, that framework helps organize repairs, turnover and carrying costs around realistic collection dates. Buyers should reconcile the forecast with the actual financing documents and transaction adjustments, then test how a vacancy or repair delay could affect the available balance. Related reading: the forthcoming book FUNDED.

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