@Sarah Krausse where are you getting your numbers from. vacancy is local and maybe 5% is ok. I use 8%. 1 month vacant out of 12. Repairs of $20 per month. My appliance repair guy minimum is a $100. Don't have more than two occurrences per year. Capex of $20 per month. Examples: roof cost $7500 /25 life span /12 months = $25 per month. Flooring 1200 sf @ $5 sf = $6000 / 8 years / 12 months = $62.50. You will also need reserves for hot water, heater,HVAC, painting interior and exterior, etc. I use 23% split between vacancy,repairs and capex and that will get you closer. Sub $1000 rentals you may have to increase that percentage. There is a cap ex spreadsheet in the files section of BP if you want the exact dollar amount to reserve.
Thanks Tim Herman. The property was just flipped and everything was updated, so that's why I had low repairs and cap ex. But you're right, I need to think longer term and include all those replacement costs even though everything is new now. I'll adjust my numbers.