Updated about 8 years ago on . Most recent reply
What do you do with estimated repairs?
If you calculated say 200 a month in repairs and you make no repairs that month. Do you count that as cash flow or put towards cap ex? What are people doing in that situation?
Most Popular Reply
Up to you. We try to analyze the numbers for each property. Our best performers get cap ex when they don't have repairs. Maybe it goes in your pocket as a nice little bonus. Maybe you choose to put it in a "no repair" jar and it goes towards a new property or something else. Maybe you set it aside for rainy day policy in the off chance that you might have a more significant problem down the road such as roof, HVAC, etc. 9 times out of 10, there is no wrong answer, it's just how you choose to appropriate the funds.