What Kind of Account Should I Keep CAPEX $ In?

[Matthew Fields]

Good evening all,

I am about to list my first property for rent in Temple, TX. It is a single family 3/2 built in 2020 that will be cash flowing roughly $500 a month after all expenses.

I would like to invest this money into an emergency fund just for this property and grow that fund to $10,000 before I start putting this $500/month into a different account.

I want to prevent this emergency fund from being eaten up by inflation, while also protecting it from taxation in the event I have to withdraw for a big cost (ex new roof, air conditioner, etc)

Could anyone recommend a good place to park this money? Also, if anyone has dealt with this in the past and has any insight, that would be appreciated!

Thanks,

Matt 

[Malcomb Stapel]

@Matthew Fields  one option I've heard of is putting them in ETF's for quick recovery if needed, but, you risk the volatility of the market. For your case, your not talking about a great deal of money. $10,000 losing 7.2% buying power to inflation in a year is $720. Yes that sucks, but your essentially paying $60 a month convenience fee to have a very liquid cash position if you need to make repairs. Personally, I think it's worth losing a bit to inflation for the peace of mind of having a cash backup.