You'll want the reserve because like I said, you may have unexpected costs come up that your not planning for. 

I found BP by accident one morning sifting through podcasts in Spotify.

With the best strategies int he world you often need to pay an attorney or something else unexpected out of pocket.

Also I have seen here in Oregon when out of state lenders come in with no license they end up making interest free loans as well if the borrower catch's on that they are not state licensed.. does not matter on a 1 to 4.. any loan in this state needs a license if you hold yourself out as a lender.. there is the 3 a year rule for local citizens in their IRAs that do not hold themselves out as lenders.And also not quite the same but on the same line as Treble damages.. if you cut timber off of your neighbors property in Oregon by accident yo can be sued for Triple stumpage..

And as a note - do not be blind to unexpected things either - keep plenty of cash reserves, only use long-term debt (forget 6 month loans, unless you know what you are doing!!!)

As soon as we bought it, we did a few minor upgrades and replaced AC (unexpected expense).Within a year of being there she had our first kid and got pregnant again shortly after that.

That would slow me down quite a bit and cost a lot if I needed to make 100 offers to close on one.Do you just estimate an "average" cost for those items and if something unexpected comes up during the inspection, would you just renegotiate the deal (making use of the inspection contingency in your offer)?

I don't know how to delete this extra comment i made on accident?

There are always unexpected things that happen with remodels, I have not heard of one flip that was finished on time and on budget.  

What you are saying is assuming that everything looks and good does not consider any vacancy, especially unexpected vacancy and that the future times are going to be perfect.