Managing capex and contingency funds

[BOB CRANEY]

am growing my self managed rental portfolio and am up to 12 units in 8 buildings with a monthly gross of around $14,000. I have always figured an amount for future capex, vacancy and ongoing maintenance and repair which is small stuff(not capex sized things). I am trying to figure out the best way to manage these contingency funds within my banking and accounting system. For those with similar or larger portfolios how are you manging your contingency funds. • Would it be best to hold it in separate bank account apart from my operating account or just make it a separate account in Quick books with the funds actually still co mingled with everything. Should these funds be held in a interest bearing account to offset effects of inflation? • How would you access , account for these funds when used and under what circumstances should you "tap " the account. Ex.  Should it be drawn from for an extended vacancy or to get a rough property rent ready? • I have been figuring 7% for Capex due to the fact that my properties are rehabbed really heavily/completely but i want to put a total dollar cap on the amount i should be holding if i reach that.  • What % of property value would be a good rule to max out for total dollars held in contingency for a particular property