Personally, I keep multiple properties in a single LLC up to the point where the equity present of the combined properties (with some cushion) is at / above my insurance coverage amount(s).

Even with a newly renovated property we wanted to have a cushion available for emergent repairs.

But let me put this out there, if you currently have $4000 in reserves and are only charging $600 in rent, you have more than 6 months cushion for vacancy if you do one unit at a time.

So he asked for $20k so he could have a cushion and said they would finish in 30 days and list the house before the winter market, and I would receive $5k when the loan was paid off no later than February with a daily interest charge after that.  

. $400 per month into savings to cover a cushion for PITI, Vacancy, Capex, Repairs, etc.After 2-3 years, assuming all else stays the same, I would generate approx. $133 in monthly cash flow on top of PITI, Vacancy, Capex, Repairs, etc.Is this a deal you’d go after?

Personally, I like to leave more than the required equity in the deal as a cushion for when the market turns and it also helps cash flow. 

@AJ Smith Whatever your final number is add 15-20% as a cushion.

With that being said you don't really go into your business plan on how you will afford the monthly payments PITI nor do you indicate how big your cushion could be. 

So you have some cushion.

I’m a big fan of the Brrrr strategy and am studying to use it, but if after I refinance a property for 75% and am left with 25% equity, is that enough cushion for a big market crash?