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Updated about 6 years ago on . Most recent reply

Connor Bell's profile image
Connor Bell's profile image
Connor Bell
  • Real Estate Investor
  • from Washington, DC
  • Member since Dec 5, 2014
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Connor Bell's profile image
Connor Bell's profile image
Connor Bell
  • Real Estate Investor
  • from Washington, DC
  • Member since Dec 5, 2014
Connect
Connor Bell
  • Real Estate Investor
  • Washington, DC
10
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37
Posts
General Real Estate Investing

CapEx Reserve - Rental Properties

Connor Bell
  • Real Estate Investor
  • Washington, DC
Posted

Hello BP friends! 

What's the rule of thumb for creating a capex reserve? (as a percentage of total revenue) 

At day 1 of owning the property, do you typically have some $ sitting in the reserve? 

  • Connor Bell
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    Franklin Romine's profile image
    Franklin Romine's profile image
    Franklin Romine
    • from Visalia-Fresno, California
    • Member since Aug 13, 2009
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    Franklin Romine
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    Franklin Romine
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    Franklin Romine
    • Visalia-Fresno, CA
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    @Connor Bell

    When I started buying properties I didn't even know what reserves meant.  I was about 6 properties into investing, both guns blazing, working half days (12 hours a day) trying to accumulate more.  

    Today I review a calculate reserves at around 7% of gross rent.

    Frank

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