With that amount saved up you could buy something and still comfortably make cosmetic updates and have reserves. 

So far, I’ve only invested in stocks and the idea of investing in real estate seems somewhat risky to me.Kyle, A couple of years ago, the Federal Reserve Bank of San Francisco released a groundbreaking research paper called "The Rate of Return on Everything, 1870-2015".

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

They will usually want to see you have the capital for closing costs and some "reserves", meaning they want you to have a few months left over to cover any surprises.

In preparation of this work, we have voted on a special assessment for 2025 and 2026 to raise our reserves.

do you have enough cash in reserves? 

@Ken Almira don't buy a Florida condo w/o checking that they've passed their engineering inspection and their reserves meet the new requirements.

Quote from @Ashish Acharya: @Cameron Marmon Since you’re married and living in Texas, a community property state, you have the option to treat your 50/50 LLC as a disregarded entity for federal taxes.

Proof of claim reserves any rights you have; if you have a lease with the tenant your “claim’ is the amount of future rent owed on the lease.  

I should add I think it’ll cash flow only 850 a month after vacancy and reserves and expenses.