how much do you keep in reserve per property?

[Ryan Arth]

I am in the process of acquiring my second SFH for rental. How much would you keep in reserve per property for repairs, etc?

I do not want to get pinched and have to dip hard into my own pocket, but I also do not want to have too much cash lying around as I want to continually pick up properties.

thanks,

strive.

[Ken Hicks]

Not that I'm a guru, But what I do is I pay cash for the property. Fix it up then I refinance and pull all my money back out, I usually profit around $100 a month from each property. I can usually pull more money out as well when I refinance. One property I was able to pull out $5k extra. I buy rentals for retirement so no matter what I make per month I save it. I would say 18 days need to be set aside for vacancies, and $50 a month for repairs. Like niceshoe says Try to keep about $3k per property in reserves. I would say once you have $3k in reserves for each property I would try to pay down the principal. I'm sure once you get more properties you won't need 3k for each property. Just my thoughts.