Investor Property Cash Planning: Preserve the Reserve After Closing

By Don McClain | Founder & Principal, Medro Advisors

For a non-owner-occupied one-to-four-unit investment property, review acquisition funds, planned improvements and carrying reserves as distinct uses of cash.

Identify when each cost becomes payable and which funding sources are confirmed available at that point. Do not assume that an expected draw can be used before its conditions are satisfied. Test the effect of a delayed project milestone or receipt and name the person responsible for deciding when the plan needs to change.

Don McClain’s new first-90-days series supplies a general cash-planning framework; investor-property financing requires its own property, borrower and program review. No approval, terms or funding timeline is implied.

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