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Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: MarciaB on April 08, 2014, 03:49:40 PM

Title: How much to set aside for repairs and replacements?
Post by: MarciaB on April 08, 2014, 03:49:40 PM
Sorry if this has been covered.

On my rental, should I be setting aside a certain percentage of rents towards repair/replacement? And if so, what percentage is ball park?

Or should I just figure out the most expensive thing (roof?) and save up enough to cover that, knowing that I could cover anything else short of that??

Thanks for any of your good thoughts on this.
Title: Re: How much to set aside for repairs and replacements?
Post by: arebelspy on April 08, 2014, 04:28:48 PM
Figure out how long the various components have until replacement, the cost of replacing, and divide the cost by the time to get how much you should save per month/year.

EDIT: Here's a link that may help: http://www.biggerpockets.com/renewsblog/2011/10/25/how-to-determine-your-multifamily-capital-expense-budgets-and-recurring-replacement-reserves/
Title: Re: How much to set aside for repairs and replacements?
Post by: MarciaB on April 08, 2014, 05:05:31 PM
Resourceful and wonderful as usual. Thanks ARS!
Title: Re: How much to set aside for repairs and replacements?
Post by: arebelspy on April 08, 2014, 05:25:07 PM
No problem!  Feel free to post any follow up questions that doesn't answer or if anything is still unclear.  :)