Leverage: How much is too much?

[Omar Burnett]

Hello all,

I am a newbie still learning the ropes, and so far it seems that acquiring my first rental unit should be pretty straight forward. Although it may not be easy and will take time. My questions are:

What amount of much leverage is too much in terms of borrowing money from banks/hard money. I was too young to remember the 2008 mortgage crisis, but it seems as if a similar situation happens most investors will be wiped out if banks began calling loans.

How much money in reserves is necessary (in terms of months/years)? Should these reserves be set in place prior to acquiring the property or set aside overtime while collecting rent?