What is a good CapEx percentage?

[John Barr]

What is a good percentage to pull from the cash flow in a rental property?

Say you have a house that is 1,700 sqft rental property that was built in 1975. The property just underwent a 50K renovation (foundation, roof, bathrooms, kitchen, flooring, paint, pretty much everything but the AC). The property is rented out for $1,500 a month.

I was figuring a 10% hold back for capital expenses before payment on everything else. So for this house, I would be holding back $150 a month.

What are your thoughts?