This helps determine the appropriate asset allocation.

You have a better handle on reality than an investor who allocated 15% of $800 rent to cover vacancy and maintenance/capex.  

Educating yourself about different investment types, asset allocation, and risk management will empower you to make informed decisions.

While passive activity losses (PALs) are allocated to each property, when determining how losses can be applied, the total passive income and losses across your properties are considered as a whole.

I would not feel great if the stated they needed x, then got x, and figured out they needed more after they closed.I would get a breakdown of what they reserves are going to be allocated towardGino

It’s typically a good idea to allocate 3-5% of the total construction cost as a contingency.

However if you’re in a municipality that charges for storm water, how does that get allocated between two metered water accounts?

It does come down to your goals, your time to allocate, your business sense, your ability to bring or raise capital, and what you are trying to accomplish.I am personally not a fan of short term rentals, as it appears regulations in many cities keep making it harder.

But even more importantly you can allocate your proceeds any way you want. 

The plus is you will save money on underwriting fees, and they allow those lower loan amounts 50k allocated.