Reserves for Multifamily investing

[Jainer Villafane]

Hey guys i need your help, my partners and I are planning on house hacking our first property. We are planning on using a 203 k loan, our lender told us we need about $50k , not including reserves ? I live in NY and we should be getting pre approved for $600k- $700K. Is NJ a better rout ? I juts feel like that's a lot of money to bring to the table for a 203 k loan? Especially when the down payment is 3.5 percent down.  ? any info would help. thank you.