you are not making up for the exemption. you are just paying taxes at the rate they should've been without the exemption because you no longer qualify for it. paying upfront to replenish the escrow account vs making monthly payments depends on your personal financial situation. i prefer not to escrow for taxes or insurance and just the bill when it comes.

The thought process behind this was to help replenish my working capital.

Thus, being able to repeatedly draw down, use and then replenish our HELOC is been essential to us achieving our goal.Hope this is helpful and best wishes to you in your investing.

For me, it made sense to keep them for the first year and replenish my funds a bit before taking on additional expenses.

I'd use the line of credit, which you can basically treat like cash (can get you better deals), then finance that deal with a mortgage to pull your money back out, replenish your line of credit, and keep using it to buy properties.

And if we do buy another piece of property do we need to use all the money or can we use some to replenish the money we just spent from saving to have the work done?

Probably you need to replenish all the plumbing system "air chambers" with air. 

But the profits from the following month should allow you to replenish those funds again.So I do think that your reserves is more of a sliding scale instead of a per house number.

Delayed financing allows a cash buyer to remain liquid after making a purchase by mortgaging their newly purchased property, recouping their purchase costs to replenish funds or invest elsewhere.

We were planning on waiting an additional six months or so to replenish our capital before continuing on to our next owner occupied deal, but a great deal on a duplex came up that I felt we couldn't pass on.