Analysis of a deal, what % to use?

[Brett Harrison]

I am in the process of analyzing deals and have been using the four square method as seen in a YouTube video posted by Brandon Turner. My question is, how much should I be putting in for Cap ex, vacancy, and repairs? I have been using 5%. We are looking for our first deal in Olympia/Tacoma area of Washington state. Thanks for any input. 

[Joe Villeneuve]

Don't use a %...is misleading.  Don't believe me?  Take the rent, multiply it by any % you like, and tell me if that % will actually pay for what it's supposed to pay for.  If not, how long will you have to take that % out and accumulate it before there's enough to cover what it's supposed to cover?  What happens if you have to cover this before there's enough money to cover it?

All taking out a % does, is give you a false security. Go out and get a HELOC on the property...and don't use it for anything but what the %'s are supposed to cover.