Maintenance Budget Question

[Steve J.]

Hello BP!

I’m a newbie, I purchased a home warranty for my rental, I got the everything plan! Prior to this, I was allocating 10% for capital expenditures every month, and 5% for regular house maintenance. Given that I now have a home warranty can I cut down on my cap x and maintenance monthly allocations or scrap it all together to increase cash flow?

Thanks

[Jeff Copeland]

A home warranty is not all it's cracked up to be: https://vimeo.com/334438076, and it won't cover actual capex such as full replacement of a roof or HVAC.

I would still hold those funds in reserve for repairs and capex. If you end up not needing them, you're no worse off.