How would you recommend allocating gross rental income?

[Matt Owens]

As a new investor I am working to find the right balance of allocation towards Vacancy, Capex, Emergency, etc. I currently sit anywhere in between 6-8%. I like to be aggressive with these numbers as cash flow is not my main focus now. I am interested to see what seasoned investors find to work best. Mostly small multifamily properties.

What is your breakdown? Thank you in advance!

[Gino Barbaro]

@Matt Owens

You would need to give more info. What market are you in, what is the age of the asset?

You should have an understanding of what the per door expense is in the market, and then take into consideration the age/condition of the property.

If you don't know what to reserve, have a few conversations with property managers in the market and talk to community banks who lend on the asset and ask them

Gino

[Kerlous Tadres]

Quote from @Matt Owens:

As a new investor I am working to find the right balance of allocation towards Vacancy, Capex, Emergency, etc. I currently sit anywhere in between 6-8%. I like to be aggressive with these numbers as cash flow is not my main focus now. I am interested to see what seasoned investors find to work best. Mostly small multifamily properties.

What is your breakdown? Thank you in advance!

 Hey Matt, 

I own 2 duplexes here in Columbus, Ohio and I would say that buying duplexes in an appreciating area would probably be your best bet. Columbus,Ohio is growing very rapidly with businesses like Intel, Google, and Microsoft. Let me know if you have any questions and if there is anyway I can help!

[Matt Owens]

Quote from @Gino Barbaro:

@Matt Owens

You would need to give more info. What market are you in, what is the age of the asset?

You should have an understanding of what the per door expense is in the market, and then take into consideration the age/condition of the property.

If you don't know what to reserve, have a few conversations with property managers in the market and talk to community banks who lend on the asset and ask them

Gino

 Great Advice!