How do you functionally save for repairs?

[Matt Burr]

We all should know that no matter what numbers you choose to use you should analyze your deals factoring in money for repairs and maintenance along with capital projects.

When you only have a house or two it makes good sense to save these funds in a separate account so they are there when you need them.

As I have grown and built a portfolio that brings in several thousand dollars a month that starts to seem a little silly to do. In reality I have more than enough cash flow each month to cover the repairs and maintenance of the units even as it fluctuates month to month. I also keep a minimum cash balance on hand for major projects then rebuild the fund when needed.

What are your strategies? Do you cash flow repairs or do you still set aside funds based on your initial analysis of the property?

[Charles D Cruz]

I always keep $10k in cash for just in case. $40k in available credit for disasters.

Cap Ex is put on a rotating schedule once the unit is acquired. Each step being after a turnover to spread out costs.