Reserve Accounts

[Mike Fitzpatrick]

How much do you guys keep for reserves?

I am just starting out with a 4 family and a 3 family and am targeting to keep the following for EACH property:

Operating Account = 2 x monthly mortgage taxes and insurance (MTI)

Reserve account = 2 x monthly MTI, plus auto-transfer of 10% of rent collected each month

What do you guys think is a good best practice?

Thanks,
Mike