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Updated over 5 years ago,
How much to set aside for Cap Ex, Vacancy, Repairs, etc.
After doing mostly fix/flips, foreclosures, tax liens, I'm looking to buy my first buy and hold rental. I've been running the numbers and typically use 5% for Cap Ex, Vacancy, and repairs, which I think are the numbers that @Brandon Turner uses on most webinars. Recently however, I saw the Bigger Pockets video How to Analyze a Multi-Family Rental Property | Deal of the Day | Lewiston, Maine and in it, @Dave Meyer uses 10% for each. I know it's probably just a matter of opinion, but it feels like you could never find a deal that cashflows enough to cover this much reserve and generate a profit. So I'm wondering, what do most people set aside for these expenses?