Advice... Multi/commercial. best area vs best rents. Reserve

[Mary D.]

Im looking at multi-families and multi/commercial mix property here in NH. Of course Im finding the good area at a higher purchase price, higher rents. Sometimes not so high rents. And then Im finding the not so good area at a lower purchase price, lower to medium rent on average.

My concern is with the higher price, higher rent I'll be putting a higher down payment and wont leave me with alot of reserve for repairs...

I love the higher monthly cash flow on these though

Is there a formula you use or percentage for reserve per unit or monthly income. I know ROI and percentage of monthly rent I'll be putting away but Im talking about right off the get go.

Im just asking anyone who has experience with this?

Thanks,

Mary