How much Cap Ex Reserves do you have?

[Allison Karrels]

Right now I am in contract to purchase my 6th rental SFH. I have been putting aside $100/month/property for a while now and have about $10,000 sitting in a cap ex reserves savings account so that I am prepared for those large random expenses. Smaller expenses just come out of my monthly rent. 2 of the 6 homes are mortgage free, so after all fixed expenses (mortgage, tax, insurance, property management) I cash flow $2,700 a month if there are no random expenses (which there always are).

Should I keep putting $100/month/property into this reserve account or at what point would you say I have enough in reserves and allow that $100/month/property go towards the down payment on rental home #7

Thanks