The lender had their own unique requirements. 

Please, no solicitations.Use the renovation/acquisition loan products that require 10% down on the purchase and you should be able to get a few going at a time.

The Sonyma FHA loan, if you refi the loan, move from before the 10 year requirement, etc.

I don't know how to avoid it.

If cash flow is your priority, out-of-state investing in more affordable markets like the Midwest or Southeast might make sense, though managing from a distance requires a solid local team.If you stay local, networking will be key since the best deals in expensive markets rarely come from the MLS.

I was told the reserves are a requirement of the REIT loan that we have.

Quote from @Jaren Taylor: Quote from @Stuart Udis: Depending on the transaction sizes you are pursuing, raising money to purchase property without debt requires either an incredible network of relationships or devoting a lot of time and effort to raising money.

The interior is decent and also requires updating .

A&D has a 2nd position DSCR but not revolving - installment only.AO has a HELOC but self-employment documented for 2 years is required. 

The last few years have been great for investors/homebuyers who bought pre-con, but looking back to the few years after the 2014/15 boom, this wasn't the case, where many had actually committed to buying a property that wasn't quite worth what they signed up for closer to closing because the appraisal weren't matching the contract price, requiring a cash top-up.