How Much Rental $ Do You Put Towards Maint/CapEx/Vac/Management

[Justin Sheppard]

Hi Everyone!

I'm getting very close to purchasing my first residential rental property. I'm getting a bit stuck on the number crunching though, and thought I'd see what you all are doing in regards to percentage of gross rental income being set aside for maintenance, cap-ex, management and vacancy? I've been using the BP calculator, which gives some guidance, but I'd like your real-world feedback.

I'm looking to invest in a newer build duplex in a b class neighborhood, but I'm also considering an older single family home in a c class neighborhood.

Look forward to hearing what % of your monthly rental income you all are setting aside for vacancy/maintenance/cap-ex/management. Having never done this before, I want to be conservative with my numbers, and your feedback will help me get a better handle on what I should be factoring into my calculations.

Many thanks in advance!

Justin

[Account Closed]

I set aside 22-25% for Vacancy & credit loss, Repair and maintenance, PM, Cap Ex reserve. For context, I own C+ and B class properties in Atlanta, Georgia.