+R12 Months of Reserves
Number of months in the aggressive reserve scenario (12 months).
Example Result
Sample DataBased on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
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+R12 Months of Reserves Formula
12 months (fixed)
Why It Matters
Twelve months of reserves provides maximum security and allows you to invest the reserves more aggressively since you have a longer runway before needing the funds. This approach works best for investors with multiple properties who can absorb short-term losses.
Detailed Explanation
The +R12 reserve scenario models a 12-month reserve fund invested in a higher-yield vehicle like a bond fund, CD ladder, or diversified portfolio. With a longer time horizon, you can accept more volatility for higher returns.
Example
Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
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