This number is going to be different across every market, asset type, and lender, but it's something that each lender should provide in their initial preliminary quote, and in most cases is negotiable.I'll usually ballpark reserves at ~$250/unit for stabilized multifamily. 

We have been using the BiggerPockets Rental Property tool to do a preliminary analysis. 

In our initial investigation we determined that we didn't want to invest locally since we live in a economically depressed area with limited employers, so we did the easiest thing and bought a turn-key property in Birmingham.

During my investigation, I learned that the zoning had changed and you are no longer allowed to bring in new homes, even if the old ones were destroyed.  

I have hired private investigators as well to find people.

However, did you investigate if this is common in the area? 

More info on the preliminary IRS guidelines can be found here:  https://home.treasury.gov/news/press-releases/sm04...Final IRS guidelines should be out by the end of the year.

Please investigate further before you put your own capital up.

I'll have to investigate that for myself.

I will keep you posted how it turns out and investigate some of your suggestions.Cheers,Brian