I need help with developing a multifamily by and hold strategy

[Chris LumLee]

Hi, all!

I recently sold my SFRs because with the few that I had there would be no way I could scale based on what I know/don't know and the limited funds that I have. So I wanted to take some time and save a little bit more on top of what I made from the SFRs and come up with a plan. I've come to realize that I need to get into multi-families but I have some worries and questions about it all. Any insight would be of great help!

The numbers: So far I have $7K set aside for reserves and I'll be at around $31K for a down payment. 

First: I have enough for a down payment on a duplex...MAYBE two- depending on the price and location (I'm thinking Memphis, TN...but open to other areas). Should I blow it all on two duplexes if I can afford it? 

Second: I don't like the $7K I have in reserves. Before making any purchases should I just rebuild my reserves? 

Third: I know a lot of people are saying 10% of rental income should go into CapEx but I've been hit hard in the past with CapEx well in excess of what 10% would have come out to had I done just that amount. Is there any blunt truths someone can hit me with on that front?

Last: As I get into this space, at what point is it acceptable to take a piece of the rental income for myself instead of putting everything excess into reserves?

Thank you!