How to plan for costly maintenance??

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Jackson Carr · Answer

Hey @Brandon Benifield,

It is as simple as putting away a certain percentage of your Gross Income per unit per month.  I am in the maintenance field so I try and plan everything out.  I use a very large excel spreadsheet.

2021- New roof on duplex quoted at 12k.  That is 5 years from now meaning I need to put aside 100/unit/month for that.

2018- Replace Back unit range quoted at 600.  2 years at 13/unit/month

Emergency Issues- 100/unit/month based off history, age of units, and tenant pool.

Total Maintenance/Capital reserves = $213/unit/month.

ETC.  My list is much longer including driveway, garage doors, painting, bathroom fixtures, kitchen fixtures, retaining walls.

If you need any help or would like to see an example of the spreadsheet I would be happy to send it to you.

Goodluck,

Jack

Jackson Carr · Answer

@Ryan Betzing and @Brandon Benifield Here is an a look at my automated form. It isn't all that sophisticated. Just takes the # of months until an expense is going to hit, subtracts current funds,  and tells me how much i need to put away per unit to pay off all of these things when they come about. My house is in general good shape, but i can guestimate  when i will have money for remodels and etc. If you want the form itself PM me and i will be happy to send it to you.

P.s. Current Funds is what is in my bank account for this house. It doesn't matter how you split it up as long as it matches the actual number.

Thanks,

Jack

Ryan Betzing · Answer

Hi Jack - I'd love to see that spread sheet - your process seems far more accurate than some of the percentages thrown around.

How to plan for costly maintenance??

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