Capital Expenditures..Save for Big repairs vs Not

[Bill Thomas]

.....so how much or what % of your gross rent roll should be put away for capital expenditures such as a new roof, driveway, leaks or whatever large repairs that need to be made to your multifamily investment properties?

Let's say you've been saving for years and you never really need big repairs; how much $ saved is enough? 

I know one thing for sure, one super expensive unexpected repair can ruin your glorious investment.

Please chime in on this one.

Billy T.

[Matt K.]

Get away from generic formulas and either pre-fund the reserves or ............ save based on the condition of your asset. Everything has a price and useful life.... based on it's current condition you can adjust up/down what your budget should be. Also, be mindful of your goals, if you have a newer 30 yr roof but you're not keeping the asset say more than 10 yrs you might not even need a new one prior to disposing of it.