That being said, it's very difficult to get rents to even cover PITI payments at 80% loan-to-value in Utah these days. 

That covers two days of the eight month delinquency.

I also like to use incidental insurance as an additional layer such as Waivo to cover items.

you're "out of pocket" those costs, plus maybe a month of vacancy.my point - you're basically always out of pocket on a rental. sometimes the rent more than covers everything, other times it doesn't. 

The borrower defaulted once the interest reserve ran out; Peer Street then turned around and lend the defaulting borrower AN ADDITIONAL $500k to cover 9 months interest!.  

Hey @Joseph Chacko vellukunnel,I think @William Kwong covered some great points especially with the financing aspect.

Typically I’m seeing higher appreciation than cash flow but it can be hard to tap into that equity if rents won’t cover the new cost of the refinance.

I wanted to cover my why and what first to give a good picture of where I'm at current state, with a background and what I'm looking for below.My why: I recently got married and moved from San Diego to Scottsdale this year.

Set your standards up front.Raise the rent to the market max and the difference will cover the deposit in 12 months or so.

Our property has cash flow and according to the many bigger pockets podcasts I’ve listened to you shouldn’t just pocket all cash flow but set aside a percentage to cover reserves, CAPEX, vacancies etc.