Then you probably need $100-$150k in reserves and another $50-$100k for turnover/upgrades if you plan to raise rents.

You want to bank reserves there to see the future cap ex because if you don't, you get another property and then two furnaces go out in the winter at each and you need 20k and now they both cashflow nothing.Your asset will appreciate and you can value add to rent add by making smart decisions on upgrading tenants.

In your case, the finance charges you are currently paying will likely be less than any construction debt you originate so I would recommend first confirming with the existing lender how to release the developable parcel and then obtain all of your approvals before proceeding. 

That's why we reserve CAPEX.

By carefully balancing the collateral and ensuring rigorous underwriting standards, it is possible to mitigate potential downsides while capturing the upside potential, providing a compelling investment proposition in a competitive market.Uses of Mezzanine Debt CapitalMezzanine debt can be deployed effectively in several ways, including:- Liquidity Provision: Providing liquidity to set aside interest reserves for first lien lenders and tax and insurance escrows required by the first lender.- Property Improvements: Funding additional property improvements such as renovations, HVAC work etc.- Operating Shortfall Coverage: Addressing operational shortfalls during challenging periods.Objectives of Mezzanine DebtThe primary objectives when using mezzanine debt include:- Project Stabilization: Completing renovations, construction, or improvements and then stabilizing the property with 90%+ occupancy.- Interest Rate Management: Buying time until interest rates normalize or decline.

You need to be more specific about that because a few hundred thousand would work, but if you mean under 10k, you aren't close to doing anything in real estate. 15k is your minimum for reserves after purchasing so even if you buy something with 3.5 percent down, you need that downpayment plus 15k plus closing cost and any rehab.It seems you just like what you listened to, but you should not invest at all for at least a year because you are too likely to be convinced something is a good deal before you know anything.

Economists note that job growth in typically underreported industries fell by 42,000 compared to the 6-month average, suggesting August’s numbers may understate actual gains.Key Employment GainsConstruction: +34,000 jobs, driven by heavy civil engineering and nonresidential trade contractors.Healthcare: +31,000 jobs, though slower than the past year's monthly average of 60,000.Social Assistance: +13,000 jobs, with more modest growth compared to previous months.Other growing sectors include financial activities, wholesale trade, and government (+24,000 jobs).Job Losses and Sector StrugglesManufacturing: -24,000 jobs.Retail: -11,100 jobs.Temporary help employment continues to shrink, reflecting business uncertainty.Wage and Fed Policy ImplicationsWages rose by 0.4% in August, up 3.8% year-over-year, supporting a cautious approach by the Federal Reserve on deeper rate cuts.

After taxes, insurance and capital reserves I think we'll be around 8%.

No, this wouldn't be possible - the down payment would need to be liquid and pretty much all DSCR Lender's won't allow a 2nd lien on a purchase (also requiring both liquid DP and liquid asset reserves)

Needless to say, multiple times they were not able to pay and we had to use all the reserve funds and sent them notice of non renewal.