Realistic Reserves for Rentals in Oklahoma

[Shawn Skaggs]

I’m trying to get started investing in rentals in the Oklahoma City area. My question is about realistic reserves when figuring deals. I’ve been using the numbers discussed in a bigger pockets webinar that I attended. However, as I’ve looked at other deals posted in the forums it looks like my reserves are higher than theirs. What are realistic reserves for vacancy, repairs, and capital expenses?

[Rhett Tullis]

generally on hvac issues in a small older home i see prices from 4k to 5k for an entire system if ductwork is present.  if not it will go up.  also generally on the older homes if you need to replace one you are best to replace both due to many issues such as the switch over to 410a, old heat exchange at the end of its life etc.  just something to think about.  also be aware that a breaker box (especially if stabloc) or a sewer line that is 50 years old can fail at any time.