When I was looking at the financials I realized that I could not get into the type of property that I wanted and still have reserves. 

Without some cash reserves, I would not do this deal.Owning a rental property is owning a business.  

At the very least, you need to read up on your local laws regarding tenants - you should never have your tenants telling you what the laws are .. and then you not being able to confirm or deny it - they can sense that you don't have a complete grasp on the law or the procedures so they are taking advantage at every opportunity and have been bilking you for months.

And, keep my own money as reserve? 

Comparing Bank Recourse debt to Agency Non-Recourse debt, the most significant difference might be Replacement Reserves.  

Here are details: Specs: Duplex built in 1979, 2/1.5, 2 storiesPurchase price / financing: $50000 with 100% financingRented: Both units are rented at $500/unit/month = $1000/monthP&I: $370 Insurance: $55Property taxes: $65Maintenance, repairs, reserves: 15% of total rent = $155Utilities: $0Property Management: $105Vacancy: 10% of total rent = $105Cash flow:  Approx $160Duplex needs $5000 of repairs.Seems like this will cash flow but I just don't like the neighborhood and I am worried about declining values and if I needed to sell down the road the value wouldn't be there.Thanks in advance.

Keeping in mind reserve requirements, it just seems as though the first move to purchase was hard enough as it is, but now as I prepare to make my second purchase/investment it seem to be dragging my feet as I look for "The Most Value Maximizing Decision".

I've completed the required 15 hrs of CE which I just confirmed has been reported to MREC. 

I have little-to-no cash reserve...student loans, daughter in private school, and a long work commute (gas $$) have a lot to do with that.

Can anyone please confirm?