He’ll be investing a chunk of money, and I’m trying to figure out how to best allocate it between the down payment, closing costs, reserves, and CapEx.Specifically:How much should I plan to have in reserves starting out?

If you’re new to short-term rentals, here are some solid resources to get you started:✅ Airbnb & Vrbo Host Resource Centers – Perfect for learning the basics straight from the platforms.✅ YouTube channels like Robuilt and Airbnb Automated – Practical, step-by-step tips from experienced hosts.✅ Books like The Airbnb Expert’s Playbook – A great intro to hosting fundamentals.✅ Online communities (Facebook groups, Reddit’s r/Airbnb) – Learn from real hosts sharing what works and what doesn’t.Focus first on guest experience, pricing strategy, and local regulations—those are the pillars of a successful STR business.I can also share my top 5 beginner mistakes to avoid if you’d like—just let me know! 

How much would you allocate for maintenance and capex.   

What if the funds you set aside are allocated to some other emergency? 

.✅ The professional approach:✔️ Automate tax categorization within your accounting system✔️ Allocate a fixed percentage of rental income to a dedicated tax account every month✔️ Review and adjust quarterly to stay aligned with actual obligationsThis isn’t optional — it’s a fundamental discipline for healthy financial management.

You need to be financially stable to do these and it's an effective way to add to your investing.I allocate $25,000 per property.

But you can often use the county’s land vs. improvement split as a reasonable method for allocating that purchase price between land (non-depreciable) and building (depreciable).So for example, if the county shows the value breakdown as $100K land and $250K improvements (on a total value of $350K), you can apply that same ratio to your actual purchase price.

If your cost seg report underestimates or overestimates the amount of purchase price to allocate to + 20 year items.

A few approaches I’ve seen work well:Profit First method: Very similar to what you outlined — money automatically gets allocated into OPEX, Tax, CapEx, Reserves, and Profit.

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My name is Jacob Hafer, and I'm thrilled to introduce myself as a new real estate agent serving the Morgantown area. As part of Real Brokerage, I'm committed to the moto Work Hard, Be Kind...