I find this to be a very interesting topic. With 20 buildings and 71 units I think I have run into just about everything possible including an act of God which cost me in the neighbourhood of $12,000. this summer. My reserve saved me because insurance wasn`t there when I needed them. An Act of God or Nature is not covered by insurance, sewer backup is but they double your deductible.
You mentioned utilities at $90.00 per month. Are the tenants paying the gas bills. If you just purchased the property you might not have run into the five or six hundred dollar per month gas bills that may occur (and did last winter) during the cold winter months along with snow plowing which can add up as well. Just something to think about regarding the positive cash flow. It would also be wise to have a reserve on hand equal to three months worth of mortgage, taxes and insurance. Just some food for thought and congratulations on your first purchase no matter what you run into it is a great business to be in. I spent way too much time in another line of business and this is much less stressful and despite any shortfalls, is much more rewarding.
Gregg
You mentioned utilities at $90.00 per month. Are the tenants paying the gas bills. If you just purchased the property you might not have run into the five or six hundred dollar per month gas bills that may occur (and did last winter) during the cold winter months along with snow plowing which can add up as well. Just something to think about regarding the positive cash flow. It would also be wise to have a reserve on hand equal to three months worth of mortgage, taxes and insurance. Just some food for thought and congratulations on your first purchase no matter what you run into it is a great business to be in. I spent way too much time in another line of business and this is much less stressful and despite any shortfalls, is much more rewarding.
Gregg