Advice on Saving For Expenses in Buy and Holds

[Kaydn Jensen]

Hey BP, 

I had a question on saving for expenses. I understand from the podcast and reading how important it is to account and save for Vacancy, Repairs, and CapEx Expenditures in Buy and Hold Rentals. The BP calculators suggest saving a percentage of the monthly rent for these future costs. My question is if there ever comes a time when the savings are compiled enough to where it's no longer necessary to take out this percentage of rent any longer. I understand this might be relative to the property and market but is there a limit where you feel comfortable with no longer taking the savings out during the life of the rental? Thanks for the responses in advance!

[BJ Everson]

$10k hold per SFH. that way you are fully financed for a new roof or HVAC or any large item can be covered. once you dip below that amount apply a % till it gets back to $10k.