Generally, reserve funds run 2% and up depending on the age of the property. You might also consider a sinking fund. As an example, if you have five years left on your roof and you estimate the replacement cost at $25,000 and you can get 3% at your bank your monthly deposit would be about $400. At the end of five years you would have the $25,000 to replace the roof.
Aug 27, 2009