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Updated over 6 years ago on . Most recent reply

Connor Bell's profile image
Connor Bell's profile image
Connor Bell
  • Real Estate Investor
  • from Washington, DC
  • Member since Dec 5, 2014

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37
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Connor Bell's profile image
Connor Bell's profile image
Connor Bell
  • Real Estate Investor
  • from Washington, DC
  • Member since Dec 5, 2014
Connor Bell
  • Real Estate Investor
  • Washington, DC
10
Votes |
37
Posts
General Real Estate Investing

CapEx Reserve - Rental Properties

Connor Bell
  • Real Estate Investor
  • Washington, DC
Posted

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? 

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Franklin Romine's profile image
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Franklin Romine
  • from Visalia-Fresno, California
  • Member since Aug 13, 2009

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Franklin Romine's profile image
Franklin Romine's profile image
Franklin Romine
  • from Visalia-Fresno, California
  • Member since Aug 13, 2009
Franklin Romine
  • Visalia-Fresno, CA
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Franklin Romine
  • Visalia-Fresno, CA
Replied

@Connor Bell

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

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