I'm not talking about questions about reserves, credit requirements, and LTV requirements necessarily.

I probably wouldn't suggest this for larger rehab budgets or something where you are likely to run into more issues (opening walls, floors, structural changes, etc).Overall though, I'd say be patient to see if you can to stack more cash reserves prior to your rehab.

With that said, I assume it is a good idea to confirm with your PM and GC if it is really possible to get 7 units turned per month. 

We had a larger capital expense (coin washer) early on but should have our reserves in place within 4 months from now.

We had a larger capital expense (coin washer) early on but should have our reserves in place within 4 months from now.

We had a larger capital expense (coin washer) early on but should have our reserves in place within 4 months from now.

The information below was provided by a Loan Officer for my Closing Cost as the Buyer/Borrower and Title Company for the Seller's Closing Cost.Loan Information$185,000 = Loan Amount$9,250 = Conventional Loan Down Payment (5%)$4,980 = Estimated Closing Cost: (Processing Fees, Underwriting Fees, Appraisal, Appraisal Review Fee, Title Insurance Services, Settlement Fee, Administrative Fee, Courier Fee, Owner's Title Insurance, Lender's Title Insurance, Recording Fees, City/County/Stamps, & State Tax/Stamps)$2,120 = Estimated Prepaid/ Estimated Reserve Cost: (Daily Interest, Home Insurance, & Property Taxes)$16,350 = Total Cash at Closing from Borrower$1,000 = Estimated Monthly Mortgage Payment: (P&I, Hazard & Mortgage Insurance, & Real Estate Taxes)Seller Closing Cost$0 = Agents Commissions: (No REA involved in this transaction per Seller's request)$900 = Total Cash at Closing from Seller: (Estimated Doc.

It makes sense, and a small down payment would leave me with plenty of cash reserves, probably even enough to be ready to put a down payment on my next property when I felt ready.

People afraid of risks should stay out of real estate, but I also think it's important for everyone out there to realize the amount of reserves they need and the importance of well defined exit strategies.

Dwight your lender will want to see 3-6 months of liquid reserves in order to approve the loan.