One thing I’ve learned about evaluating rental properties is that the numbers can look great on paper, but unexpected repairs can quickly change the picture.

A roof that needs replacing, an aging HVAC system, plumbing issues, or even a repair you didn’t discover during the initial inspection can put pressure on your cash flow.

I know some investors set aside a fixed percentage of monthly rent, while others prefer to maintain a separate reserve based on the age and condition of each property.I’m interested in how other investors approach this.

• Do you set aside a percentage of rent, or maintain a fixed reserve per property?

• Do you budget differently for older properties?

• What’s one unexpected repair that taught you to prepare better?

I’d especially like to hear from landlords managing multiple properties. How do you make sure your reserves are realistic without tying up too much capital?