Cap ex and repair reserves on a duplex

[Ayne C.]

I'm under contract on my first multi (yay!!) and I'm setting up my accounting. Is there a number you like to set aside as cash reserves for cap ex and repairs? Is there a number per property you like to leave in the bank for this? Or do you truly collect 10%, 5%, etc, of rents?

[Jeffrey Almonte]

As others have said, saving a percentage of income is not an accurate way to calculate CapEx. Your CapEx depends on many factors such as age of the building, location, recent upgrades, etc. Make a list of all your CapEx items and break it up into monthly costs to replace it based on it's lifespan and current condition.