Have you considered that sometimes having a slightly larger reserve—say closer to 18-20%—can actually help you sleep better at night? Sure, it ties up liquidity, but peace of mind can be worth the trade-off, especially if you're juggling multiple properties... thoughts?
- Personally, I went with around 20% reserves on my first property—felt a bit excessive at first, but honestly, when the AC broke mid-summer, I was glad I had that cushion. Peace of mind is underrated...
"Peace of mind is underrated..."
Haha, isn't it though? I remember thinking my reserves were overkill too—until the roof decided to leak during a stormy weekend. Ever tried finding a roofer on short notice in pouring rain? Yeah, not fun. Suddenly, that "excessive" cushion felt like the smartest move ever. Curious though, did you factor in maintenance costs upfront or just wing it as things popped up? I kinda did a mix of both...
I feel you on the roof thing. I thought I was being super cautious budgeting for repairs, but then my HVAC decided to die on the hottest weekend of the year. Nothing like sweating buckets while trying to find a tech who won't charge an arm and a leg for emergency service. Honestly, I mostly winged it at first, but now I keep a separate stash just for those "fun" surprises. Guess peace of mind is something you learn to appreciate the hard way...
"Honestly, I mostly winged it at first, but now I keep a separate stash just for those 'fun' surprises."
Keeping a separate emergency fund is definitely smart, but I wonder if it's always the best move to stash away too much cash upfront. When I bought my place last year, I was tempted to set aside a big chunk for unexpected repairs too. But then I realized that money sitting idle wasn't helping me build equity or tackle other debts. Instead, I've been focusing on keeping a smaller emergency buffer and putting extra funds toward paying down the mortgage faster. It feels like a balancing act—having enough to cover surprises without missing out on opportunities to save interest long-term. So far it's worked out okay (knock on wood), though your HVAC story does make me second-guess myself a bit...
