While very lucrative - if you don't have enough reserves, it can really break the bank. 

But you will need some good capital and reserves unless you have a very trusted boots on the ground partner that can help you out.

We have 2 phase one properties reserved in Bennah Oaks.  

I believe you have to reserve a spot via Eventbrite, link is on there. 

Are you accounting for everything—taxes, property management, maintenance, insurance, reserves—and still hitting your target returns?

They required me to have reserves, experience, describe what I would do with the property and they did an appraisal on the property. 

How have they accounted for reserves / contingency when things don't go as planned. 

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).

Low cash flow requires larger reserves.  

@David F.As Russell mentioned co-ops are probably 1/2 the price of a condo and you would also have extensive costs to set up a co-op and typically it’s my understanding the builder funds the first 1-2 years of reserves.