advice please

[Mike Fisher]

Hello,

I have a 15 unit apartment building and its my only property (other than my house). I own 50% of this building and a business partner owns 50%. Is there a formula or rule of thumb on what I should keep in the bank for maintenance/repairs etc so that I may take cash out each month after bills are paid.

thanks in advance

[Aaron Montague]

I always have enough to replace 2 boilers and 2 water heaters in cash. Other than that I keep 5% of each rent check in an account literally called "rainy day fund." That account always starts to make me smile JUST before I need a new roof or something along those lines.

I have no clue how your 15 units are configured, but I would guess 20-30k on hand in cash would probably be a good idea.