We also allocate a capital reserve out of Net Income (5 - 10% depending upon the age of the property and its systems) to address things like a new roof, new HVAC, etc.Capital improvements are a given in this business, so best to budget for them ...

Also, 5% is a low allocation for vacancy.

Given the uncertainty with building the dates are likely to move some.Another thing to consider is that the money has to be allocated to the project whether or not it is deployed to a bank account.

I know my costs are average 13% of ARV with hard money (not 20% like the formula allocates).

If using property management, ensure ALL the rental income is paid to you , not minus their fee, you want to pay that separately as you do any other expense The rental income belongs to you, it’s yours to use how you wish to allocate any paymentsIt may only be $100, but if financing numbers are tight, and you have 10 properties, it’s $12k a year “more” rental income turnover Banks love turnover, the higher the better, they do not know if you made a profit, moreover, they do not care !!

At 40 houses, even if you have a "sky is falling" month and lose 3 furnaces (2k apiece)  and two roofs (7k apiece) totaling 20k , you should be allocating around 150/mo per house for repairs min plus making 7 to 8k in net profit. 

It's possible he has allocated $300 to either of the two options and isn't sure which one is worthwhile

If there's 20 parking spaces currently and in the lease it states a minimum of 5 spaces must be allocated to Jiffy Lube then it's probably fine.

I read from sean terry book that u allocate 10-15$ a sq.

Repairs are treated similarly, so if you repair or replace the roof, you will allocate some of the expenditure to the rented unit.Hope this helps.