We had to use a significant amount of our interior rehab reserves for installing wrought iron fencing for better security and invest in the dated plumbing system.

While each operator’s process will be a little different, we’ll walk through some of the common steps among all operators so you’ll know what to expect.Soft Commit – Reserve Your SpotThe first step is to tell the operator that you plan to invest with them on a specific opportunity.

I had reserves upfront in the bank.

But a key consideration is having cash reserves after the down payment too.

Most hard money lenders I've looked at for BRRRR deals like to see at least six months of interest payments in cash reserves after points and other closing costs used for the hard money loan.

Reserves in the Hoa.

I just get nervous when I see the numbers but I imagine with such low inventory and interest rates we are not going to see a large persistent price drop any time soon even if foreclosures flood the market later in the year.I am going to keep some cash in reserves and start reading up on investing in foreclosures in case this does come to fruition. 

I couldn't a loan out for the unit so I took a personal loan for $20,000, pulled from my retirement and made up the rest in cash reserves.

(unless you're like me and will continue to leverage all available equity and cash into more units)Make sure to have a reserve account!

After the first year, they left and I had some cash in the reserve left over to do some landscaping.