For emergency savings, consider pre-paid cards.

The security deposit and pre paid rents should be transferred to the buyer at settlement and should be on the ALTA closing documents.

Prepaids  01 Homeowner’s Insurance Premium (12 months) $240.0002 Mortgage Insurance Premium ( months)03 Prepaid Interest ($33.74 per day for 23 days @ 4.125%) $776.02

In the podcast he mentioned writing the rehab costs into the settlement statement, which required an escrow account to hold the funds at closing, if I recall correctly. https://www.fanniemae.com/content/guide/selling/b2/1.2/03.html"The new loan amount can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs, prepaid fees, and points on the new mortgage loan (subject to the maximum LTV, CLTV, and HCLTV ratios for the cash-out transaction based on the current appraised value)."

That doesn't include any loan related costs (appraisal, origination fees, underwriting fees, pre-paids).  

Prepaid items, okay, but def no more cash, and preferably not even closing costs.

Part of your prepaids and reserves should have been 2 months of tax and insurance escrow paid in at closing, in addition to collecting the annual insurance premium and expected taxes due for the year in which you closed.

You can include all of your cash-out refinance cost (and prepaid) in your mortgage (If ARV supports).

PROPERTY SUMMARY Property                                                                Florida Heights, Atlanta                 Westview, Atlanta           B/BA 4/2 3/1 Sq Ft 1,980 1,135 Built 2005 1948 Asking Price $ 99,000 $ 99,000 Source Local Wholesaler Local Wholesaler Occupancy Tenanted Tenanted Current Rent $1,030 $865  DUE DILIGENCE Exit Strategy: Buy & Hold                                    Pro-Forma ARV (as-is) $145,000                                          $140,000                          Pro-Forma Rent $1,400 $1,200 Rehab for Buy & Hold $15,000 $10,000 Exit Strategy: Flip Pro-Forma ARV (Flip) $210,000 $390,000 Rehab for Buy & Hold $50,000 140,000CASH CLOSE Closed within                          30 Days                                             10 Days                            Close Date 1/11/2019 1/11/2019 Contract Price* $ 98,000 $ 99,000 Adjustments (Taxs, Pro-rated rent and deposits )*               $ (1,416) $ (1,201) Closing Cost* $ 1,005 $ 1,369 Adjusted Purchase Price* $ 97,589 $ 99,168 * Per HUD StatementREHAB PRIOR TO APPRAISAL Handyman                                                             $2,230                                               $6,025                             Gutter $250 $1,150 Appraisal $695 $695 Plumbing $0 750 Cleaning 0 125 Total Rehab Cost $3,175 $8,745 MORTGAGE Loan Product Delayed Financing                           Rate/Term Loan            Closing date 2/21/2019 2/21/2019 Appraised for $ 156,200 $ 150,500 LTV 67% 71% Rate 5.75 6.12 Term 30 years 30 years Closing cost and Prepaid (Financed ) $ 8,502 7500 Loan Proceed $ 96,500 $ 100,088 Rent Collected during mortgage free months $ 2,060 $ 1,730 Total Cash Spent $ (100,764) $ (107,913) Cash Stuck in the Deal $ (2,204) $ (6,095)Pictures of the properties: BRRRR Analyzer we use: (2 of 9 tabs) 

Target demographic.under-bankedlack of credit...credit cardheavy cash usersgovernment assistance now provided on EBT cards (this is big for ATM usage)expanded use of prepaid debit cards from employers and othersgrowing lower classdigital signage/billboardsbox advertisingvideo advertisingfuture - couponing sent to mobile phones when someone walks by the ATM