Maintenance Allocation

Rehabbing, Fix and Flip, Rental Properties
1

If your rental property is in good maintained order, is there a general percentage of your rent that you put away for future maintenance issues or does it all vary too greatly depending on the house?

I am trying to plan where I put my income. A percentage goes to the loan payment, a percentage to mtc allocation, taxes & insurance, future investments, labor, etc. Then, there is protection from taxes and extra principal payments.

Thoughts? Thanks

2

If you figure that your operating expenses (everything except the mortgage payment) will be 50% of the gross rents, you’ll be very close (assuming that the property is properly managed).

Mike