Cash Reserve Thoughts

[Alex Kreeger]

How do you best find "that number" for cash reserves. Do you have a number tied to a major capex item? Do you go by a certain amount per door? Or do you just have a specific chunk of money that has worked for you, and you stick with that. Thanks!

[Joseph Hammel]

I have 141 units and don't keep any separate reserves. 

Everything comes out of the operating account. 

Budget 5% Vacancy (currently really 3.7%) 3 turns 2 ready and open.8% Maint 8% cap x Plus all the fixed expenses tax, ins, utilities are all figured in. 

After paying myself I still show 11.48% surplus.

Lines of credit are there if needed as well.