Question about conventional financing for third property

[Mike Quealy]

My short term goal is to buy a third property, type of property TBD. I have some questions about financing the deal.

I currently have two properties; A single family (primary) and a townhouse that generates rental income. Conventional financing seems to be the recommended approach to financing a property—especially if you have a 9-5 job. In my limited experience however, it’s my understanding I will need to be able to show that I have a certain amount of cash reserves set aside to maintain my current properties in order to get bank approval. Is this a correct assessment?