Home Warranty V.S. CapEx Fund?

[Niyi Adewole]

Good Afternoon Everyone,

I have my first property under contract and I am mid-way through the inspection period. The property costs 192,600 and is currently bringing in $2200 per month. It has 1 brand new Furnace and 2 that are aging. I was recently told that a home warranty would cover the cost of one of these furnaces going out, and have started looking into it. Home warranty costs $750 per year. 

Question: Are Home Warranties worth it? Or should i just set aside additional cap-ex to replace the furnace and other items when neccessary?