How much to set aside for expenses

[Alex Rivera Jr.]

Hi, everybody. Just out of curiosity, what percentage of rental income do you put aside for maintenance/repairs, vacancies, cap ex, etc.?

[Jules Aton]

Great question and tons of variables. It will depend on how many properties you have, the condition they are in and your personal financial state. When I had less money I would keep a cushion of $5,000 or so in HYSA and use credit cards as needed. As my W2 earnings increased and I had more in taxable account I started using my pay check and if more is needed credit card to bridge until I can sell some stocks.