What if I don't account for expenses?

[Corwin Hernandez]

Hello BP, I just love asking questions and getting people's insight. So I have a friend who I try to explain some real estate things and he had a question. Being on Bigger Pockets, I've learned that you put money away for vacancies, capital, expenses and things like that. I try to tell my friend that after I've put all the cash away for expenses and mortgage, and try to get a property that cash flows $100 a unit which I think is a good number. Also, aside from the main question, does $100 a unit sound like a good number to shoot for when analyzing a deal? But his mind set is he wants to just keep all the rent and put it away in his pocket WITHOUT putting any money away for expenses and just to pay for them when they arise. He doesn't think there is a difference. Can someone help me explain the necessity to put away money every month instead of pocketing the entire rent minus the mortgage if there is one? To me, I think it's important to account for these things. He jus thinks it's better to put away $400 let's say for arguments sake, instead of $100 cashflow. He said he will have a large enough nest egg to pay for anything that arises such as cap ex and utilities during a vacancies and such things but otherwise, keeping all the money.