There is a mortgage balance but the property is not distressed

This reserve amount represents roughly 2–3 years of projected repair costs, which might be a conservative approach, but it gives us a buffer for unexpected, high cost repairs when they pop up.With a larger portfolio, the reserve pool wouldn’t need to grow proportionally, as funds and repairs can be balanced across properties, allowing costs to offset each other over time.

The court ordered the tenant to pay back-owed rent plus interest. 2 years passed, and the tenant reached back asking to "clear up the balance."

If consistent cash flow and diversification appeal to you, this might offer the best blend of growth and flexibility.Ultimately, it’s about balance: if you want to prioritize appreciation with minimal hassle, the first two options shine.

If you want me to give you a quote, I'd need to know the address, 1st lien details (type of loan, balance, interest rate), credit score, income/DTI details, and target LTV (can go up to 80% CLTV on the 4plex). 

I was conflicted on DR's adamant position against leveraged debt, however, having a degree in finance and economics I believed I had well balanced approach.

On the other hand, a good passive investor hires sponsors who have years more experience than they can ever hope to achieve.So again, this is why I feel a balanced portfolio needs to have both types. 

Some people don't have financial situation, nor have the bookkeeping to track or maintain it.Again, I personally find it very stressful just thinking about living that way for the life of the loan keeping the lowest daily balance possible. 

Then after they take their fees, and any repair costs for the month, I get direct deposits to my account of the remaining balance.

They are unable to give you a balance or ledger report when there are repairs on properties.