Capital Projects: Save or Wing it?

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Do you pro-actively save for major projects (new roof, new HVAC, new water heater, etc)? Or, do you sort of wing it and hope for the best, knowing that you'll probably have enough cash on hand to cover something like that. Or something in between?

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@Kimberly T. it's difficult to budget for the unexpected and your situation sounds miserable! I'm glad you made it out in one piece. As @Giovanni Isaksen mentioned, a sewer inspection is essential in the due diligence period. I'm sure that will be on your list going forward.

It may sound excessive, but when I'm on boarding a new property, I usually chock away all of the after expenses cash flow into an emergency fund separate from my maintenance/cap-ex saving. There will always be surprises, so it's a good idea to have cash on hand to smooth out the bumps.

If you're going for reliable cash flow, it's the only way to go.