This can be done quicker, or if major items need addressed, it could be longer.Repairs are the same way, you are budgeting reserves for a "might happen" scenario.  10% is not a bad number, and there could be years you are above that and years you are below that.  

Most of the true business learning for SFHs has been "on the job training for me", so I feel that I have a good skill set in that realm.Switching to MFH just seems to me to be a bit of a "whole new ball of wax", and the rules change a bit. 

It's money you set aside to replace items that have shorter lives than the property itself.

Sometimes we have to train our tenants to be good tenants, but that comes with follow through.  

These are professionals with additional training and a stricter code of ethics.

These are professionals with additional training and a stricter code of ethics.

You may be ahead of your reserves for a year or two, but quickly can fall behind those your reserves, as budgeted.I take a very conservative approach, but not only budget all recurring items, like landscaping and snow removal, but also take the replacement cost of every item divided by the useful life (both physically and aesthetically) and budget that as well.  

It will have a median and average cap rate in there, rental comps as well as per item costs for expenses.

I’m here to help and I have access to a massive group of professionally trained Bookkeepers I can bounce questions off of if I don’t know the answer to your question.I look forward to hearing from you!

I’m here to help and I have access to a massive group of professionally trained Bookkeepers I can bounce questions off of if I don’t know the answer to your question.I look forward to hearing from you!