They want to see that the person they're lending money to is capable of having a cushion in case the SHTF.So, try another argument on me.  

If it’s the latter, dont buy anything until you have a cushion of 3-6 months living expenses saved AND a plan to cut your expenses down drastically to stretch it out should the worst happen.

That would provide a cushion if things don't go well.  

Having my 5K emergency cushion, in there reminds me not to touch that for other things.  

I agree with @Tom Goans It is difficult in this era to purchase properties at enough of a discount to create the cushion for those "what ifs" - at least in some locations.

I MAKE MORE MONEY THEY HAVE NICE HOME AND I HAVE SEVERAL MONTHS RENT AND DEPOSIT AS A CUSHION

Is there enough cushion there for you to have a decent cash flow and keep reserves in the bank for the tenants that trash the property or stop paying?

My long term is definitely on the buy and hold side of things, but at the same time, selling it for a profit would give me a lot of cushion for the property we are flipping.

Looking to be 100% with "OPM" (other people's money) and skipping ahead before you save some capital for cushion/your own costs, then its potentially a recipe for trouble

This will give you a significant capital and income cushion to work from.