Couldn't agree more—those unexpected costs can really blindside you. Did you factor in maintenance reserves when you first ran your numbers? I've found that setting aside around 5-10% of monthly rental income specifically for repairs and surprises helps cushion the blow. Also, curious if you've had any luck with insurance covering some of those squirrel-induced wiring nightmares... I've heard mixed experiences on that front.
Yeah, setting aside a solid maintenance reserve is definitely smart advice. Personally, I lean toward the higher end—around 10%—especially if the property's older or in an area prone to wildlife mischief. Insurance can be hit or miss with critter damage; had a raccoon incident once, and the insurer initially balked at covering it. Took some persistence and detailed documentation to finally get reimbursed. Hang in there, these hiccups smooth out over time and your numbers will stabilize eventually.
10% does seem safe, but honestly I think it depends a lot on your specific situation. If you've recently renovated or upgraded major systems (roof, HVAC, plumbing), you might actually be fine closer to 5-7%. I've found sometimes setting aside too much can tie up cashflow unnecessarily, especially if you're trying to leverage equity for monthly income. Maybe run a quick check: list out recent upgrades and expected lifespans, then adjust your reserve accordingly. Could free up some extra funds each month without leaving you exposed...
"I've found sometimes setting aside too much can tie up cashflow unnecessarily, especially if you're trying to leverage equity for monthly income."
Yeah, good point—but have you considered how quickly those "recent upgrades" turn into "wait, didn't we just replace that?" moments? 😂 Seems like every time I get comfy with my reserves, something unexpected pops up. I do agree though, 10% might be cautious if you've got newer systems. Have you factored in the age of your appliances too? Fridge replacements sneak up on ya quicker than you'd think...
Maybe I'm just paranoid after my last rental fiasco. Thought I'd covered all bases, then boom—water heater decided retirement was overdue. So yeah, 5-7% sounds reasonable IF your major systems are fresh-ish. Just don't underestimate the little stuff either; it adds up quicker than you'd expect.
"Seems like every time I get comfy with my reserves, something unexpected pops up."
Haha, ain't that the truth... every single time. I feel ya on the water heater drama—mine went out literally two months after I convinced myself it had "plenty of life left." Still, you're right about not tying up too much cash unnecessarily. Finding that sweet spot between cautious and cashflow-friendly is tricky, but sounds like you're on the right track.
