How To Understand Reserves Needed for Financing

[Kenny Lincoln]

Looking for feedback about the following scenario, thanks BP. 

Plan to sell an investment property and receive around $215k. I would like to use a 1031 exchange to leverage all of this money. I’m trying to get an understanding of the potential reserves needed to be approved for lending.

Assume the following

1 primary residence with wife as co-borrower, MITI of $2200/month

Buying 7 investment properties with me as only borrower, average MITI of $640/month

800+ credit score

I’ve read 6 months of reserves will be needed for approval with Fannie/Freddie. Assume Fannie/Freddie is being used, this would put me at $40,080 in reserves needed to be approved.

Primary = $2200 x 6 months = $13200

Turnkey = $640 x 7 properties = $4480 x 6 months = $26880

Total = $40,080

Am I going thinking about this the correct way?

I’ve also read that you can use retirement accounts towards reserves, can anyone provide some feedback? Thanks in advance.