Reserve Amount - House hacking in Atlanta
Hi guys!
I'm trying to analyze deals for house hacking (renting by the room) and am re-evaluating the way I calculate reserves. Currently, I use a percent multiplier by rent: 5% for repairs/maintenance, 8% for vacancy, and 5% for capital expenditures. Assuming I'm getting $4,000 gross rent, that means I'm putting $720 away in reserves. Is this too much? How do you guys calculate reserves?