Expense and CapEx Set-Aside Fund Amount

[Charles Wiegert]

How much do you leave set aside for your property for expense or capitals. At what amount or percentage do you stop saving expense and capital funds, if ever? 

What is your plan for emergencies? if you have a couple properties do you lower the amount per property, i.e. expect that not every property will need capital improvements at the same time? 

Just curious & Thank you,

Charlie 

[Gabe G.]

@Charles Wiegert  You will get many opinions on this subject

It's really a two fold question.

1. How much of gross rents, can be expected to be repairs  and how much as a percentage for capex(things that need replaced)

2.  Do you really need to set aside money for these expenses if you have access to credit?

What I am currently doing is estimating 10 percent for repairs(I think this might be high) and 10 percent for capex(I believe this might be low, over time). I am currently at 10 mortgages and maxed out. However on number 2. I did not set aside any money. The reason being is I saved it and plowed it back into the next down payment to grow as fast as possible.

I believe repairs and capex, will probably be around 15-20 percent total of gross. How you split that is your call. However, when growing I recommend plowing that money into down payments, as long as you have access to credit to cover emergencies.