Advice for first time landlord (reserves?)

[Rafael Ro]

Hello all,

I'm about to purchase a condo at 240k, with 20% down, and $400 HOA.

This will rent at $1800, and my mortgage, insurance, property tax and HOA will be about $2000.

If I can own this property and lose roughly $300 per month for the first couple of years then I'll be happy (because I'll save some taxes, rents should keep going up, and I'm aiming for some appreciation too). 

This is a condo - the setup is like a 4plex, where they all share a laundry room and each 2 units share a 2 car garage - I'd only own the 1 unit.

Now - **** can happen anytime and with anything - but realistically, what would you say is the expected performance? I've never been a landlord but I used to be a tenant and I barely had any repairs needed... I took care of the occasional small things. But what should I expect as a landlord? 

Is it realistic to estimate maybe 2k in repairs on average per year? I'd also estimate 4-6 weeks turnover, every 2-3 years... but the rent I'm sharing is slightly under market so I should be able to rent quick and choose good tenants. 

Anything else I should consider? 

[Andrew Postell]

@Rafael Ro so, a single family home will have more cap ex/repair costs because things like roof and foundation are on the home owner but since a condo, yours will be lower (since the COA fees kind of cover those). So, I would use 15% for my complete expense ratio.  Meaning, from my rent, I get 85% of the rent.  Hope all of that makes sense.