Reserve cash for building maintenance

[Patrick Michael]

Pursuing my first multifamily.  Wondering what the community thinks on the optimal amount of cash on hand is for maintaining the building at time of purchase.   Thanks all and happy to be here . 

[Lindsay Davis]

@Patrick Michael,

@William Whitley's offered some great, nuanced information. Another rule of thumb would be 1% to 3% of the property’s value per year, with a floor of at least $3,000.

Keep in mind that this would be for routine maintenance only. If you’re budgeting for capex reserves like a new roof or siding, that’d be additional. I’d say $100 to $200 per unit per month would be a good ballpark estimate for capex needs.