Posted by WilliamGA on May 30, 2000 at 24:17:53:
You should keep some reserves in the bank to cover unforseen expenses. How much you keep would be left up to what makes you feel comfortable. I would say at least a couple of months rent payments in case the T/B skips out on you as this will most likely be where the need for the cash comes from as you would have to cover your pmt to your seller during this time.
Yes, your option period from your seller needs to be longer than the option period you give your buyer. This will be covered by getting an option period from your seller with automatic rights to renew in the contract. I would never L/O a property for less than a total of 3 yrs right to option. Thats one 1 yr term with an additional 2 rights to renew. That way, you are covered.
Hope this was of help.