Houston County (Warner Robins) is thriving running a surplus every year, has a growing population and high end jobs, amazing schools throughout the county, and is constantly developing infrastructure to keep up with the growth.

With QE in mind, I'd like to not have too much surplus of cash on hand either in the upcoming future... personal opinion. 

I have a surplus of reserves to cover a 20% down payment, repairs, and enough to cover potential vacancies for several years. 

Similar to LVT.I get mine at Surplus Warehouse.

Texas has a lot of land though, and I see new construction literally everywhere, which is the one thing that would worry me - a surplus of supply. 

I pull out most of the surplus cash from the operating account and put it in an account owned by the same company but in Bank Y.

Yes, super conservative, but I rather have a surplus at the end of the year :)]Save for Capital Exp: ($150.00) [Ballpark figure using Brandon's The Book on Rental Property Investing, Chapter 5)Save for Repairs: ($162.50) [10% of income]Save for Vacancy: ($104) [Income multiplied by -.064, the vacancy rate of the city]CASHFLOW: $464.96 = $232.48/unitSo there you have it thanks for taking the time to read a long post.

Do they have surpluses or any large projects planned in the near future?

State specific statutes stipulate how to handle surplus.

What if there is an escrow surplus?