Reserves required for financing

[Brian Webb]

I am a newbie and haven't done a deal other than my primary home which is a long term BRRR!

I am trying to get financing in place, or at least identify the institutions that I want to work with, so I spoke with the first bank yesterday. I started with this particular bank because I already have a good relationship with them through our family business. This bank said as part of their approval process on a residential investment property, they need to see 6 months in reserves for the rental and 2 months in reserves on my primary residence to cover the mortgage payments. Unless I misunderstood her, they need to see that for each additional rental property acquired. Has anyone else run into that? Is that a normal requirement?

I will be talking to more institutions and focusing on more local credit unions to find a portfolio lender, but this first meeting was a little disappointing.