How much in reserves do you have?

I was reading a lawsuit of one where this happened where the person was getting a 40M LOC and had to put 5% in for interest reserve. they took $8M from their fund wired the money and never got the LOC.

Will monthly rent cover all expenses and provide additional funds to set aside for reserves?

Welcome to BP @Cory M.Your approach to starting with a single-family or duplex and gradually scaling up is sound, and focusing on cash flow and maintaining reserves is a prudent strategy.

Regular preventative maintenance, typically during turnovers between tenants I take note, anything that will likely be a need to repair in the next 12mo I try to fix during my turnovers before a new tenant, but I also take note of anything that may be needed in the next 24mo and the next 5years and I estimate the cost and budget it into my reserves Best of luck with your self management journey!

Most people who ask this type of question when they are new forget that you need a minimum of 15k reserves on any property.If you just boil down BRRRR, you can't do it without money because it's not a flip, it's a rent/refinance so you need money for a downpayment and money for the rehab.

Just buy a third property when you have the downpayment and reserves set aside.

Orginially I was evaluating deals and account for tithes, but after expenses, debt service, and reserves.

@Jon Martin You are right , if you don t know how to market a property and get direct reservations you should not attempt to co-host or triple net lease a property.You fail to mention that leases on a property can be as long as 30 years.Long leases are a way to give both property owners and management companies favorable terMs.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).