I quit my job as engineer and didn't have as much reserves as I should have.

Most likely scenario... bidding at auction did not meet lender's reserve and they took it back as REO.

Well, she just retired at 30 years as an E-9, while my hubby is now at 24 years (I got out to be Mom after 6 active and 4 reserve...and started buying houses as a job).  

Thank you so much for your input . 40 % is net after all expenses and vacancy/ repairs reserves

That will allow you to keep some of your liquid cash in a reserve account for your property as well as keep that cash on hand for your family.

I don't take reservations for more than 48 hours in advance. 

First let me respond that I am not an expert investor, but the rent needs to be your expenses plus a reserve amount that will build for "emergencies". 

@Andrea Diaz    $100,000 depending on where exactly and the value of the investment property can be used as reserves to fund a few flips in most markets.

@Santhosh RamaniI would just start a reserve fund (savings account) that you add to monthly.

Pro’s: keep cash reserves to make payments, use leverage on rehabs, get foot on door to then grow LOC’s, non traditional lender may not care about seasoning of fundscons: lower entry amount is likely, if personally guaranteed your utilization rate can hurt credit, traditional lenders will need seasoning on funds if transferred from loc into main acct