Reserve Money

When doing rentals how much money should I have set in a seperate account for reserves…do you worry about that a/c going out or any plumbing problems

I pool my reserves between several properties, the thought being that the odds of losing all of the A/C units or all of the furnaces at once are minimal. Most other items, I can handle out-of-pocket. All of my roofs are good…I have enough in the account for about 150% of the purchase of any one item.


Hello, I rented out a townhome at one time and replaced the a/c before renting it out. It is expensive to replace major components. The heating unit and other related items went out just before I was about to sell it. I could say have thousands in reserve to be safe but you may not have the same situation as I did. Credit cards come in handy at times of emergencies.

how would you apply for a business credit card if ur just atarting out or should i just use my personal cc

Hello, Personal CC.

I would apply for a business keep your personal for you that is why they call it personal credit keep in ming you might need to co-sign for your card on the other hand it is alot easier to keep your business needs seperate! Your tax advisor will like you more as well!

Hello, What REOConsultant is saying is true. At the time, I did not have a business so I used my personal cc. If your considering going into business, then yes, use your business cc.