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Updated over 17 years ago on . Most recent reply
What to do with Operating Expense Reserves
Like a lot of newbies here, I was surprised to find that operating expenses run about 50% of your rent collections. My question is, what do you do with all that money. Obviosuly you are not spending hundreds of dollars to maintain your property every month. Is it just collecting 0.5% interest in a savings account? Do you reinvest it in other properties? Just consider it extra income, and when the roof needs to be replaced get a loan or put it on a credit card? Or do you actually spend most of it on expenses such as insurance, professional fees, and advertising?