Estimating Maintenance & Capex Reserves

[Steve Uhlig]

Good Afternoon Investors, 

I am looking at 1-4 unit properties in the suburbs outside of Philadelphia, Pennsylvania.  My question is centered around estimating maintenance & capex reserves when analyzing potential deals.  As I have learned, failure to properly take these two factors into account is what causes many an investor to purchase a bad deal.  I believe the Bigger Pockets calculators recommend estimating between 5-15% of gross monthly rent for a maintenance reserve and at least $200 as a capex reserve in a single family home or at least 8% of gross monthly rent as a capex reserve in a multi-unit.  I realize that all of this depends on the shape of the property, but I am curious as to what seasoned investors use as a maintenance reserve and capex reserve when running quick screens on dozens of properties.  I would think you would want to be conservative, but not so conservative that you price yourself out of every property.  How is this done when quick screening properties for a closer look?  Many thanks for any information or advice you can provide.

Steve