Welcome to the investing in real estate show. I'm Clayton Morris. So glad to have you here.

This is the show where we help you become a more financially intelligent real estate investor.

That is the goal of the show and I think there's something here for more

advanced real estate investors and beginning real estate investors.

It's our Q&A episode so you get to ask us your questions and I give you the answers and it's very easy to do.

You can go to Morris Invest.com slash Clayton.

That's how you can leave us a 30 second question.

Try to keep it to about 30 seconds or less that way we can answer more of your questions.

So today we've got a few good questions from Elias, Richard, and Anthony.

Let's take our first question and by the way I do not listen to these ahead of time so I try to give you as fresher

response as I can as I'm listening to these live. Okay here is a question from

Elias. How much does an owner of several houses have have to put aside in the event of significant unexpected

expenses like replacing the water heating system or the hot water tank, the roof, preparing

the house for new tenants, rent ready,

Central air conditioning, or other expenses.

I'm asking since I own seven rental houses,

and for some of them, I've had unexpected expenses ranging between five

and ten thousand dollars each. Okay thanks Elias great question and this is a very

important part of your rental math equation that you need to be doing ahead of time. Of course, before you

buy a property you always want to account for expenses in your formula. You know, we use

the 40%, right? So when we're analyzing the rent on a property, so if it's you know $1,000, we want to multiply that

times 12 months, then we want to, of course, multiply that total amount times 0.6, which will give us,

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