Updated almost 12 years ago on . Most recent reply
Capital Projects: Save or Wing it?
Do you pro-actively save for major projects (new roof, new HVAC, new water heater, etc)? Or, do you sort of wing it and hope for the best, knowing that you'll probably have enough cash on hand to cover something like that. Or something in between?
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IMO, that's a disaster waiting to happen. You should always have a plan for everything you are doing.
Cash flow is NOT Rent - PITI. I don't know if you have had a chance to read up on the 50% rule, if not, then I will highly encourage you to read up on it.
These major expenses always seem to happen when you least want them to and not being prepared for them will only lead to failure.
Having said that, I hope there are more landlords out there trying to wing it, because that will only create more buying opportunities for investors like me :-)