Cash Reserves for your rental? How much!
Hey BP!
I know when analyzing deals, its critical to account for vacancy %, repairs %, CapEx to cover costs. Is there a rough estimate that anyone is aiming for?
For example, if I did a remodel on a home and replaced electric, plumbing, Hvac and cosmetic, I would look to have ~5k in cash reserves. Whereas, if I did not replace big ticket items and just did some minor cosmetic work, I would estimate around ~10k in cash reserves.
To be more specific, assume you're self-managing, the property is within ~1hour of where you reside. Does anyone have some thoughts, or am I missing anything. I am not looking for exacts as every property is different. I am looking for an estimation.