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Updated almost 5 years ago on . Most recent reply
Savings for repairs and vacancy?
New investor. Wondering how much to set aside for repairs and vacancy. Do you go off a percentage of total rents, or something similar?
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Bjorn Ahlblad
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Bjorn Ahlblad
#5 Multi-Family and Apartment Investing Contributor
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#5 Multi-Family and Apartment Investing Contributor
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- Shelton, WA
@Wade Kulesa I use the usual percentages when underwriting. When operating I use dollars; accumulate rents in an account for the property and pay any expenses out of those accounts. Initially I deposited seed money into those accounts-5 to 6 months rent.