Reserves for a rental property

[Robert Biggerstaff]

What do you personally keep in reserve for each one of your single family homes? For my area and the value of my property as it seems prudent to have no less than 1500 in reserves for each property.

[Tim Porsche]

I try to keep a minimum of 5 months PITI payments for each property in a low yield money market account. Right now it's earning 2.10% so I figure at least it will (almost) keep up with inflation sitting there, and I have instant penalty-free access to it whenever I need it.