What are reasonable figures to use as capital reserves on a park with Well and septic?
I am in the diligence phase of my first park purchase and just found out that the park is not on sewer as I had previously thought. It is still attractive to me since it is close to my house and has good numbers and upside otherwise
Is 15% a fair figure for cap reserves, maintenance and repair on the whole property? It is 30 spaces (22 occupied) with two wells and 3 interconnected septic tanks. I do have a decent reserve personally, so I am not concerned about losing it should catastrophe strike, but I still don’t want to wind up with negative cash flow.