Sometimes I get on the phone with people and they tell me they factor: 10% vacancy, 10% maintenance, 10% cap ex, 10% management.

Ex: On day 25, I have an automatic transfer to my main account for the exact amount for my mortgage payment, but I earned interest on the rent for the first 25 days of the month.3.

I am using 5% for repairs, 10% for cap ex, 10% for vacancy, and 10% for property management.  

EX: studio can have a split system and a water meter with little trouble.

You should use a state-specific lease that is clear regarding the start and end dates, the monthly rent, the fees that will be charged (ex. pets) and those that may be charged (ex late fee), the amount of the security deposit, and a clear list of rules associated with the property (no smoking inside is a big one as are rules related to parking).

While cap ex is inevitable, there are certainly ways to prolong the life expectancy of major services such as scheduled filter changes, scheduled drain clearing, etc.

I am obligated to remove my ex from the mortgage by refinancing or selling the house by next July.

Even with today's interest rates, I'm still looking to apply the same strategy:Buy a cosmetic fixer upper with the potential to convert an existing space into an ADU (ex: detached garages) in a great area within <20 mins from a trauma 1 hospital.

Cap Ex Reserves has nothing to do with income!

Some people even write in estimated cap ex in the calculation.