Conroe, TX · Member since 2016 · 237 posts · 43 votes
Hey all,
How do y'all keep track of the funds you are holding in reserve for CapEx, Vacancy, etc? Do you just plan for those numbers in your analysis but then take it all as "cash flow" and pay it as it comes up, or do you actually accrue those dollars in an account?
I keep cash reserves. That's it. You can try to estimate when the stove will break, but I can tell you that I've got stoves that are 25 years old and still kicking. I have AC units that are older than that. I know anything could break at any time, so I have an emergency fund to cover them.
Also, If an appliance breaks, I will buy used. It makes no sense to spend $800 on a refrigerator that I can get for $300 on a facebook yardsale page.
No, I don't feed it once I reach a resonable amount. You can determine what is the right amount. The roof, ac, and appliances will not all go at once, not will all of your properties be vacant at the same time. If something breaks, fix it. Then replenish the money next month.