My wife and I are bored with our house and the city we live in. We want to move to an apartment in a city about 40 miles away so we can be around different culture, have access to a spa and swimming pool, shops, restaurants, people watching, etc.
We don’t want to lose the house we live in. We want to hold onto it and rent it out. I am worried about vacancies, evictions, maintenance, repairs, etc.
How much cash reserves should I have set aside to protect us in the event that something goes wrong. Our mortgage is $790 and the house can rent for about $1200-1250/mo. Any cash flow I plan on setting aside to cover emergencies.
Renting an apartment, my income will be tapped. I won’t have the money to make a payment on my house in case of an eviction or vacancy.
How much cash should I have in reserve to cover making payments on my house and maintaining the property?