CapEx Reserve In multifamily Properties

[Mike Ball]

I am having a tough time understanding how $250-300 per unit is adequate for a CapEx Reserve. For example, if an HVAC blows out, that's a $3000+ expense and there goes 10 years of reserves. There are so many other items in an unit that the reserve should pertain to including appliances, roof, electrical, plumbing, etc.

So my question is, how do people justify $300 per unit annually for reserves and what do they expect to capture in that figure (versus just including it in repairs).