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113
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87
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Geoffrey Schnake
  • Property Manager
  • Saint Petersburg, FL
87
Votes |
113
Posts

too much cap ex $ laying around

Geoffrey Schnake
  • Property Manager
  • Saint Petersburg, FL
Posted

Every month I put 10% of all rents collected in a reserve account for cap ex. I don't expect any major system expenses in the next few years, as most of my doors were total rehabs after I purchased them. I have ample credit to cover the inevitable big surprise. The  lost use of money sitting in this account is starting to bug me, it's getting near 100k. Anyone have an idea for a similiquid use for this capital?

Thanks for any input

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8,666
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Jon Klaus
  • Developer
  • Garland, TX
4,017
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8,666
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Jon Klaus
  • Developer
  • Garland, TX
Replied

How about buying another property with it, and using a line of credit for at least part of your unpredictable CapEx?

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