How much reserves should I have on a property?

[Jack Wyatt]

I did my first deal last year. I bought a rooming house. 13 bed 7 baths. It's a lot of work and randomly there are late-night calls but I cash flow around $4000 a month. It's an old house with its share of problems. How much reserve should I put up? House is paid in full but I will be doing a cash-out refinance this month to try and do my second deal (hopefully another rooming house). I hear Brandon T talk about putting up reserves but I never hear him say how much that should be? Any help is appreciated.

[Alan DeRossett]

Make a list of everything you may need to replace and the age of the roof, Water heater, and appliances. if a roof lasts 30 years and it's 35 years old you should have enough to replace soon so bigger reserve. I like to have 24 months reserve in case of no rent that's what a bank just required for my son to buy his first place up from 9 months before Covid-19.