Updated over 7 years ago on . Most recent reply
CapEx Reserve - Rental Properties
Hello BP friends!
What's the rule of thumb for creating a capex reserve? (as a percentage of total revenue)
At day 1 of owning the property, do you typically have some $ sitting in the reserve?
Most Popular Reply
When I started buying properties I didn't even know what reserves meant. I was about 6 properties into investing, both guns blazing, working half days (12 hours a day) trying to accumulate more.
Today I review a calculate reserves at around 7% of gross rent.
Frank