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Updated over 10 years ago,
Replacement Reserve Funds
Good Morning BP,
I have a question about reserve amounts. When analyzing deals, what do you budget for reserves? do you withhold a flat rate amount, or do you withhold a percentage of the gross rent? Currently I am using a 10% of gross rent for my calculations. Is that too much, is it not enough? Does your market make a difference in what you reserve? I am in the dfw market, specifically fort worth. Thanks in advance.
Marlon