One way or another, however, the investors must work to pay down loans, increase rents and decrease expenses wherever possible.

Does "everything" include the estimated expenses on a rental property.

There were some expenses which we could not predict because the former owner had stripped out all the appliances etc.  

There are other bonuses to hiring a spouse for your business such as the ability to open a Medical Expense Reimbursement Plan.

Just make sure your offer contract allows you an inspection period with the option to back out if your inspection comes back with any big ticket expenses that turn it into a bad deal.  

At least just to keep your monthly expenses covered for that property.

Obviously, New Jersey is a competitive, expensive market where the good deals are gone before you know it if you don't know where to look.

How much should I keep in reserve for "unforseen" expenses?

They should go back to the lender and ask to modify the loan, because that will lower their payments...otherwise, they will always have this problem, with the rents not covering all of the expenses.   

Things slowly recovered.It was during this time I changed my personal lifestyle: I paid off my car, and cut my own living expenses to under 750 a month.