Confirm with your state's property code or a qualified real estate attorney how this is handled where you are.

Question for buy and hold investors..After putting money aside for reserves, what do you do with excess cash from your rentals?

My gut told me that I was training them to negotiate if I acquiesced, and many of you confirmed that for me. 

I've done this repair a few times.Patricia is spot-on.....is it more widespread and do they have reserves to fix them all correctly?

Would love to hear if anyone thinks these numbers / assumptions are wildly off or too conservative.Acquisition CostPurchase Price = $200,000Closing Costs (at 2%) = $4,000Due Diligence (at 1%) = $1,500Up-front Renovation Reserve = $5,000Total Acquisition Cost = $210,500Financing:20% down payment = $40,00080% loan (likely a major lender, traditional 30 year loan) = $160,00030 year term @ 3.2% (educated guess with very solid credit)Monthly Expenses:Mortgage Payment = $691.95Property Taxes = $120Insurance = $55Property Manager (soup-to-nuts) = $159Other Variable Monthly Expenses = $40Capital reserve monthly deduction = $37/month (5% of net income withheld for capex)Assumptions:3 months to renovate / update post acquisitionProperty rents for $1,400 / month (and assuming a 3% annual increase)20 day vacancy assumption = 5.48% vacancy rateTenant takes occupancy month 3Annual expense growth rate of 3%Expected / Target Returns:Monthly IRR (w/ financing) = 15.48%Monthly cash-on-cash return (average over 5 years) = 2.79%Monthly Net Operating Income (year 1) = $798Capitalization Rate = 4.79%Kyle

Thanks for tips, was easy to confirm 👍.

My questions are:Because I have no reserves in my "business" checking account, I can't pay for rehabs using this account.

The rent doe the duration of this Lease is hereby reserved to the Landlord (This means that if Tenat leaves before the stated duration  of this Lease, or is evicted, the tenant shall remain liable for the balance of the rent, subject to landlord's obligation to use reasonable efforts to mitigate any loss).We do not plan to leave the appt before the end of the lease, however, as we know, life happens.

Anyway to find out the banks reserve price?

Thanks for confirming!