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General Landlording & Rental Properties

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Casey Dimascio
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How much to keep in reserves

Casey Dimascio
Posted Jan 2 2020, 13:06

I have a three family in Attleboro, Ma. It approximately cash flows 1k a month after expenses. Right now I am putting all profit into a reserve account. How much do you guys have saved for reserves? I was going to stop at around 15k. I know they say that you should save 1-2% of the property value a year to go towards vacancies/ repairs but I don’t want to have 30k sitting making no money. I figure if I come across an expense over 15k (roof/ foundation/ ect) I can easily get a loan for the remaining balance. What do you guys recommend? 

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