5. Create good buffers with your properties
With each and every investment property, set up a buffer account to cover two to three years worth of property costs.
Ideally, it will be linked to your loan as an offset account so
that it can earn interest.
Start wherever you can. If you don’t have two to three years worth of capital, put as much as you can into your offset account and begin adding as much as possible to the account.
Once you have accumulated enough equity to cover the costs, refinance the property and stash a sizeable portion into your buffers – spreading it out among various properties if needed.
Boost your savings even more by living off a credit card with at least a 45-day grace period. Put your entire pay packet into the account – where it will accumulate interest – and then pay your credit card off to avoid any interest charges.