Sjo: When you make an emergency fund a reflection of gross income or a reflection of historic expenses, you are inherently making the assumption that income and expenses in the future will be reflective of what they have been in the recent past. Sjo: There r a few differet ways you can look at this. The simpler way would be to take a look at the components of the property and just eyeball what's likely to fail in th five years. And then how much is that going to cost her replace and then set aside an emergency fund that reflects all capx that you reasonably expect for the next five years, plus a handful of months of vacancy.

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