Setting aside reserves and expenses monthly or creating lump sum?

[Jeremiah Russell]

Which scenario is better?

Scenario 1

I have a rental home where I set aside 35% of my rent each month for vacancy, repairs, capx, property management, etc. The rest of the rent goes to paying down the mortgage, and my personal extra income goes to paying down the mortgage. Goal is to pay off the property as fast as possible.

Scenario 2

I have a rental home where I pay the minimum on the mortgage from the rent each month. With the extra rental income and my personal extra income I save towards a lump reserves fund on the property let’s say figuratively $20k. Once I have saved the lump amount all my rent and extra personal income goes towards paying down the mortgage.

Thanks for any input.

[Cassi Justiz]

I'm personally working on scenario 2. My reserves goal is 10k per property which would cover most "what-if" scenarios. (multiple cap-ex, insurance claim + make-ready, etc)
Once I reach 10k per property, then I can re-evaluate and determine whether it's time to start paying down mortgages or add additional units.