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Updated about 8 years ago,
How much to save for PM, repairs, CapEx, Vacancy
Im currently saving 10% of gross rent for property management (altho self managing), 10% vacancy, 10% repairs and 10% CapEx... My actual current rent income is $3413 but when we move out of this unit I'm estimating gross income of $5813. So saving 10% of gross income for each of these reserves is $581/mo for EACH reserve (total of $2325/mo)... Am i saving way too much for reserves?!
Should i be saving 10% each of current rent income or 10% each of what i could potentially be getting in rental income when we move out?