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Updated over 8 years ago, 06/14/2016
Capital Reserves
Quick question,
Are capital reserves paid into every year. For example, my first year I pay 250 a unit, so on a 100 unit building, the bank will make me put $25000 in capital reserves. Say I don't spend this money, do I have to put another 25000 in the next year or do I have an extra 25000 dollars in cash flow the 2nd year I own a property vs year 1? Thanks in advanced!