Where do you put your reserves?

[John Humphries]

Hello all, I have about $400/month leftover after holding costs from my house hacked triplex each month to put towards maintenance, turnover, and capex. It seems ridiculous to let that money sit in checking or savings until I need it, especially the money that is earmarked for capex! Where do you keep your reserves? Money market, mutual fund, savings? Do you keep different acounts for each item, or put everything into the same pot?

[Walt Dockery]

I use Ally financial for my rental checking and rental reserve account, about the best interest rates you'll find for FDIC insured bank accounts.

Money market accounts don't yield enough to be worth bothering with, IMO. I would not put reserves in anything risky/volatile.