Are you investing you CAPEX and Vacancy funds?

[Jason DeMauro]

I am about to close on my first 2 duplexes this month. In my analysis I budget for vacancy and capital expenses (which I believe most of you are doing) and it comes to about $10k annually for each property.

My question is, what are you doing with those funds in the absence of a vacancy or capital expense?

It feels like a waste to allow the funds to be sitting in savings account with near-zero interest. My thoughts are that these could be placed in some semi-liquid investment vehical and drawn down when need. If the capex funds are needed immediately, I could always float the downpayment on the job with a credit card.

If you are doing something other than letting it sit in a savings account, what are you doing with the funds? What challenges/successes have you had?