Amount of reserves?

Question

Is there a formula or general rule as to how much reserves you have set aside per property?

Chris Mason · Answer

Put in your head the greater of six months PITI for each investment property, or...

2% of unpaid principal balances if you have 1-4 financed properties.

4% upb if you have 5-6.

6% upb if you have 7%+.

Mark Douglas · Answer

Derrick W.   For me, I'm shooting for $2,500/door at minimum.  Some say just keep setting aside 15% gross rents, each month forever, which couldn't hurt either.  You can never have too much squirreled away.  Comes down to your comfort level

Derrick W. · Answer

this is for my emergency cash on hand.

Derrick W. · Answer

all water heaters and central air units are less than 2 years old.  I'm guessing roofs are  all 10 years or less.

Jim Adrian · Answer

Ive seen 5 to 10% of the house value.  it also depends on your future repairs.  Make a list of them with cost and timeline and set your savings accordingly.  Example... How old is the roof and what will it cost?

Amount of reserves?

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