The last month's rent will be spent, then you have $1,000 on reserve to ensure they return the property in good condition.

My main focus these next 6 months is to educate myself and continue to add to my savings for down payment and reserves.

@Clay Hall, I like a HELOC on my primary residence as an emergency fund, and wish I’d had that extra money when I got started, simply as reserves.  

I have the reserves to weather defaults and my team knows their portfolio level numbers, so it's just a matter of getting note investors and lenders on board.15 years payments and 50% LTV are the limits we're seeing for each individual method by the way.

The company has a points-based system, where members receive a certain amount annually, and they can then bank those points for up to a year and use them to reserve time at various resorts around the world.I have been dragooned into assisting them with defraying timeshare costs by trying to figure out how to rent out the unused points so that they don't go to waste, before I dive into this myself, I wanted to find out if anyone else has experience with vacation rentals with this set-up.

@Sean Conroy I would talk to the city and confirm exactly what you can and cannot do with the current zoning and land use if you haven't already.

That should get a response from him (not recommending actually moving it without attorney confirmation but tell him that) - that typically will get a response.

I expanded fast and my reserves for sure suffered temporarily ( was taking some reserves for future downpayments) , but am aggressively building those back up, while growing my personal savings bucket, and do very strigegent tenant background checks and references.   

Like FurnishedFinders, Roomies.com etc to see if it appeals for MTR .Also you have reserves for a few months in case it does not rent out quickly?

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).