How much do you set aside for repairs each month when analysing?

[Amandeep Singh Bassi]

Hello everyone, how much do you set aside for repairs each month when analyzing a property?

The property has not be bought yet, has not been seen in person, the property is just listed on a website.

This question is specifically for when you analyze a property. How much do you factor in to know if a property will cash flow before you actively pursue it... Is there a ball park you use, or specific percentages?

Thanks in advance for your response.

[Joe Villeneuve]

Zero, nothing, $0...

Why?, because it accomplishes nothing.  Forget percentages.

Here's an experiment for you:

1 - Assign any percentage you want out of the rent each month (use a specific rent in dollar$) for this.
2 - Write down on a sheet of paper a list of months, and next to each month have two columns.  One for each month's dollars you're taking out, and next to it a running total of it.
3 - Get an estimate of the cost to replace a roof, a furnace, a driveway, a new kitchen, and anything else you would be using this money for.
4 - Look down the second column (the cumulative number) and find out how long it would take to have saved enough in this fund to pay for, let's ay, a roof replacement.
5 - Then, think about what would happen if during this waiting period, you had a vacancy, or a different/added cost.
6 - Now ask yourself, "is the act of saving this money monthly a functional action, or an illusion"?

So, what's the answer? Get a personal or business LOC that's not connected to any property, and use that as your source of funds, instead of the method proposed.