Rental property Calculations for newer investors

[Stephen Rager]

I'm finding myself running a minimum of two calculations per property when figuring the monthly cash flow. The reason is if you calculate using CapEx, Vacancy Rate, Repairs which are subjective(not actual) they affect the monthly cash flow. I'm holding money aside already in a fund to cover these potential expenses, maybe I'm holding too much, that could be used to purchase additional properties.

So for example, if I have $10,000 in an account to cover these, they will need to be replenished at some point.  But, initially, they won't so this affects the actual cash flow per month.

Also, is there a percentage of the properties value you recommend to have an account to fund these expenses.  For example, if I left $50,000 in an account to cover Cap-Ex, Vacancy Rate, Repairs, and I have 5 $50,000 properties.  Do I stop adding to it? Or at what point would you stop adding to the expense funding account.

It's going to be needed one day, you just can't predict the specific day.  So it makes sense to hold a percentage of liquid cash to cover the expense. 

Any articles, podcasts, books videos or links would be a great help as well. TIA ~ Stephen Rager