well there are some expensive repairs that could come up but th ebig thing like siding and driveway and roof is all covered by the 150 association fee and next place would be a townhouse as well. As far as financially once i get a place or 2 i think this buisness will run seperately of my own finances and i wont need to contributew but at the momnt i have enough finances to cover the first place not sure what a ideal amount would be for covering emergency expenses?
The big thing I'm getting at here is whether taking on a second property will make you over-leveraged. Yes, after several years any well group of well run properties
should be able to generate the cash-flow to provide for all maintenance, but it's during the first few years, when you are just starting to collect rent payments that an emergency (or even a misevaluation of the market) can destroy you.
Different people will use different numbers, but I'd like to know I can cover a sudden $20,000 expense on each property without it forcing me into bankruptcy. I'd also plan on 3-5% maintenance costs per year (depending on the age of the building, the newness of things like the boiler, roof, plumbing etc) and vacancy rates of at least 1/12 (many will use 2/12 to be conservative).
I can't give you more specific advice without knowing a lot more about your personal finances and the kinds of properties and market you are working with, but at least run some pessimistic numbers yourself and ask "could I survive this". Instead of first looking at a rental property as having the potential to generate lots of wealth (which it certainly can), I would begin by making sure it isn't going to ruin me.
PS - really loved The Departed :-)