You don't need liquid for reserves.

But, keep in mind you'll still need to be liquid for closing costs: Lender Fee, Broker Fee (if applicable), Title, Insurance etc.Cheers!

One of the buildings in my development sold for $130k (same floorplan as listed above) because the owner had liquidated her whole inventory, and that was the last building. 

I typically figure 3% and I'm usually pretty close.With that being said though, I have heard of people buying a property and only making $100 a month cash flow, and I wouldn't waste my time on that deal either, because my liquidity is limited.   

You might have issues getting a loan with so little liquidity left, so that could be a potential road block.

Most lenders won't do loans under $50k, and the only lender I know of that can will require you to have at least 20% of the total costs (purchase + rehab) liquid in your bank account or $15k, whichever is greater.You mentioned that you only need money for the repairs; does that mean that you are able to pay for the property up front with your own cash? 

Peter would depend what your current liquidity and net worth is along with your annual income from your job/business/current investments etc.Different assets are cycling at different points in time in different states.2009 was mainly coming off the bottom for the lower priced SFR assets. 

From my severance, we have a nice cash windfall, and now have more liquidity than we've ever had.

My biggest challenge right now is lack of liquid assets.One thing I'm very interested in hearing about from others is:-what was your investment strategy for rentals?

UNLESS you have a large amount of liquid assets available in the event you need them, but still the long game wins.Best of Luck.