There are occasions where the borrower does have ability but does not qualify for traditional - but that is rare.Throw in the fact that I am not a bank so I can create loans out of thin air and only need a 10% reserve as another reason.I can share good and bad stories - it really goes to underwriting the borrower and the price they pay (paying more) is irrelevant if they cannot make payments

I typically use a local bank as the operating account for a property, and then if I own the property 100%, I will have a savings account that I will use for my reserve account for all of my properties.

I started with a $20K reserve.

@Alec Jacobs We typically m aside the windows and buy our own and usually get a quote based on the measurements from both the box stores and an independent glass company.

I also agree that if 850 is your max unless you have some good reserves try to buy below that.

@Khayla WilliamsI strongly recommend against borrowing 100% for a propertyThere is significant risk in owning real estate including section 8 and maintaining the home in a certain condition and if you do t have the funds for those repairs you could lose it all.I always recommend people budget and save enough for a down payment and reserves before getting into their first property.

How much interest reserves are there? 

Again, the BiggerPockets store has some books on this topic, or you can learn about it by watching podcasts, reading blogs, and interacting on the forum.

We use docusign to send a reservation agreement which essentially makes them sign the house rules. 

If I select the forms on the BP website, it redirects me to the book store website.