@Doug Willis Are you talking about Reserves or Capital Expenditures (CapEx)?

Quick and dirty, I usually account for 5% capital expenditures, 5% vacancy, 5% repairs.

Here is a list of due diligence item I use on my MHP investments:Check zoning and permitting compliance (city zoning)Check local law compliance (with Sherriff and/or Police)Search City Council minutes for any adverse mentionsCheck with State Department of Public Health's Division of Community Environmental Protection (CEP) for compliance violationsCheck with property neighbors for any disputes or pending legal actions Water - Check with water provider for any open or recent issuesSewer - Check with Sewer provider for any open or recent issues or complaintsElectricity - Check with electricity provider for any open or recent issues Rent roll with space number, name of resident, move-in date, renter or owner occupied, number of occupants, monthly rent, additional charges, current balance due and any relevant notes about the residentList of capital expenditures for the last 3 yearsGet last 2 years of Profit and Loss statementsGet last 2 years of Tax Returns for the LLC/Park12 months of Bank Statements for the LLC/ParkCurrent Accounts receivable statementsBuild proforma for next 5 years using rent roll and expensesGet owed taxes to City/County/Local govGet Insurance Quote of commercial liability insurance2 years of utility billsProperty Tax bills for last 2 years List of park owned home including copies of “rent to own” or sales contractsGet list of vendors and contract status for each vendorTalk with on-site property manager regarding issuesConduct Onsite Property Visit with property managerSpreadsheet detailing who pays all utilities including water, sewer, gas, electric, trash, cable, etc.

I use four reserve accounts:Tax Reserve - to pay real estate taxesInsurance Reserve - to pay for Landlord's Insurance and Umbrella InsuranceReplacement Reserve - for capital expenditures (I sometimes use it for maintenance and repair expenses also)Other Savings Reserve - a contingency reserve

Many seem not to want to pay the expense of the commercial loan.As to your idea, you'd have to come with a way/reason why your LLC is paying for your primary residences expenditures. 

IRS requires you to amortize capital expenditures like flooring, cabinets, etc.

We put about $20,000 of the bank's money into this property using a construction loan, and have made some out of pocket repairs after the initial capital expenditures.

If you are a contractor you can increase your research and development expenditure.

I am wondering if the expenditure of this is just part of the business.

Renovations are capital expenditures which is why they are depreciated with the property.