What should MY reserves be?

[Anthony Garcia]

I know this has been asked a million times over the years in a generalized approach... but I want to discuss my current situation, reserves, etc and get opinions on whether I should adjust.

I own 7 properties, 2 2-units and 5 SFRs (9 doors). 

I cash flow about $6.8k/month after PITIA pre-tax without my full time job.  My current mortgages/loans add up to ~$9.6k and my rental income (without vacancy) is $16.4k.  I have $986k in debt balance and $550k in equity if I were to liquidate (including realtor commissions).

In a lender's eyes, I have 5 mortgaged properties.  Two of my properties are paid off.  I have one private (family) loan and one equity loan included in that total debt and loan payments above.

Since I'm still under 10 mortgaged properties, I'm able to use conventional financing @ 20-30% down.  Lenders require 6 months reserves which I'm able to account for with just my retirement accounts.  I currently have a little over $75k in retirement accounts which the lender only gives me 60% for (due to withdrawal penalties), so $45k towards my reserve requirements for future purchases.

Now to my question... how much reserves should I have without even thinking about touching retirement savings?  I currently have 3 months PITIA + Security deposits for every single property.  This is $39950 liquid sitting in very low interest checking accounts (rent goes in and mortgage goes out of these separate accounts).  Is this too much, just right, or not enough?  I do dip into this money for new purchases and renovations but quickly replenish it and hold it at this ~$40k mark.  Surplus cashflow goes into more aggressive mutual funds and are also planned to be used for future purchases.

Thanks for any feedback and sorry for the long post!