The additional cash you have due to leverage put into more hard assets and the cash flow generated put into fixed income/equities after reserves.

I do have reserves to cover contingencies.Let's just say, I'm satisfied with those numbers.Had I had to use a bank, I would have had to put down 20% for $33,000, plus closing and my payment on the remaining would be $1400 PITI including HOA. 

just to be candid, unless you're using some kind of creative strategy... you need a really solid amount of cash including reserves. 

She missed other emails from the insurance provider confirming the policy did in fact cover all hazards.

I just used cash to build my first 3 specs no loans at all.. once done and sold then I went to lima got one loan from them.. then went to local bank ( much much cheaper) and got a 3 mil  guidance line and went on to build 30 or so in charleston.. you have to prove the model.. its not like buying a rental where lenders look strongly at your fico  fico is required but not the main consideration like and investor loan and all you need is 20% down or 30% down and a few bucks in reserve that wont fly with spec loans..

Low cash flow requires larger reserves.  

We can't find the next opportunity, have little economy of scale, so I'm forced to keep our reserves high.

2) Maintenance Reserves: So many factors here to consider!

A great CPA who specializes in STRs can confirm this and help you stay compliant.About That CPA…Honestly, I’d recommend finding a new one.

1) We make sure backside funds are confirmed at title before we initiate frontside wire.2) Our agreement that we get the wholesaler to sign essentially would allow us to secure a loan against the property if for whatever reason there was an issue (as never happened).3) We generally insist that both the A-B and the B-C contract are at the same title company.