Financial risks, such as unexpected repairs or vacancies, can also impact your cash flow.

I was curious so I googled  Lee Anderson and was delighted to find out that I might get some answers from Bigger Pockets but it seems to me like these  are all very old comments. 

Same thing might happen with the vacancy if you have 2 months for lower end instead of 1 month for better area.I would use higher percentage for repairs and vacancy in lower end area when you compare CF for the 2 properties.Even in higher end area this year I had 2 evictions and one of them with 6 month vacancy and over 12k in damages, bad things can happen in both areas, the important thing is to keep cash reserves so you can get over unexpected expenses.

Always, always, always have a reserve because there will always, always, always be unexpected costs.HOW MUCH TO RESERVE?

As someone who has a tendency to spend excessively and live paycheck to paycheck, the lockdown measures implemented during the pandemic unexpectedly helped me stabilize my financial situation.

As indicated we ran into multiple unexpected issues but also it was our first time rehabbing a unit that was old enough to have lathe and plaster (whether built in 1901 or 1920s).Did we make a mistake re-doing the entire plumbing and electrical rather than just what was necessary?  

If not, going with a single-family home or a duplex could be a good option.For larger investments, you'll need at least six months of reserves to cover any unexpected issues.

(Be sure on those income streams, no speculation.)Have a good size cash reserve (I had at one point $115K in cash reserves in an account, because I was so cautious about life's surprises, especially medical, I have since eased up on that and put more than half of that to work for me in multiple income streams) waiting in a high yield savings account, or in some state of liquidity, that you can draw from at any time for those unexpected surprise expenses, because sometimes when it rains, it pours.

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