I'm planning to do a renovation, and prices keep jumping around. I'm curious what reserve fund experts think is necessary? What amount should I aim for so I don't get caught short?
The main rule is take your estimate and add 20-30% buffer to it, that should protect you from surprises :) It's hard to name an exact amount because everything depends on the area, region, and what exactly you're touching (cosmetic work or redoing all the utilities), but this percentage is universal advice that saves most people. If your budget is really tight, it's better to do the repairs in stages than to take out a bloated loan for everything at once.
To the 20-30% buffer I'd add another thing - cosmetic surprises always pop up! When you start opening up walls or floors, you might find out the wiring is a complete mess or the floor is rotting, and that's a whole different ball game money-wise. So I'd recommend keeping a bigger cushion - like 40-50% on top of the estimate if you have no idea what condition the apartment is in, especially if the building is old. And most importantly - never believe the estimate is accurate, the workers will always ask for extra payment!
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