First Year of Rental Income--How much to put away?

[Lauren Stamey]

Hello,

I'm wondering how much "rainy day" money I need to put away before using profits from my rental. My mortgage on the property is ~1,000 and I am renting the property for $1,500. Is there a suggested percentage of my profit ($500/month) that is recommended to keep to pay for potential repairs, vacancies, etc.? 

Thanks!

[Bob B.]

It sounds like you have a good property.  If your mortgage is $1000 and your rent is $500 your profit is less than $500.

There are other expenses that will come up.

I would "put away" the whole $500 until you have a good understanding of what your true expenses are.

Good luck.