You will most certainly want significant cash reserves in the bank to cover those expected (and unexpected) capex and opex hits when Murphy comes to visit.  

If so, do they have reserves for repairs? 

Debt is debt in any manner Leverage should be used in a controlled way So many posts on BP suggest 3.5 percent down processes to be homeowners but nobody advises on how much reserves are needed to deal with maintenance and vacancies.

My only reservation is that turn key is tougher to make work in Indianapolis these days. 

HI Bradford,Most lenders can do the 203k FHA streamline or full K / standard program or the home style conventional loan program.The problem is most have not done a rehab loan program or have construction experience  or the process on the lending paperwork side.There is quite a bit of paper work such as:- scope of work + revised scope of work or adjustments- consultant review depending on the depth of your construction project and work being done- resume for contractor- certain lenders have requirements for contractor experience such as you cant GC (general contractor) your own project and such- reserves or margin of error in the project such as the 35k streamline 203k loan which only leaves about 28-30k of actual construction cost with the remaining 5-7k for reserves and contingency- only 203k standard FHA can finance your carrying costs (so you dont have to make a mortgage payment during your 6 months of construction)- Home style conventional rehab loan cannot have a project that is more than 50% of the after improved value (meaning your rehab cannot be 250k on a 450k valued project after you finish) youd have to lower your rehab to 225k or less in this example) This is not limited on 203k products- much moreAfter the construction details and process theres the typical financing aspects which include regular FHA or conventional qualification guidelines.The rule of thumb though is to qualify for way more than you need or to do a max purchasing power assessment to see how much borrowing power we have to ensure we have enough room to budget for the 1) purchase, 2) rehab / construction budget, 3) reserves and contingency budget to fit in loan approval criteria.Let me know if you have any questions on what to look out for.

I also have a new super capacity washer and dryer to help minimize loads of laundry.Most days the cleaner cleans house on same day as people check out so I'm ready for those last minute reservations when I still have a few open days.

You need to be able to save up cash to get started in investing and save up 6 months of reserve funds.The higher paying job will allow you to get more financing.

Some use it to build up more reserves when first starting off. 

It can not be effectively done leveraging everything and having no reserves or working capital in the bank.  

I'm pretty sure he means your investment goals, your day to day income, what is purchase price, what are your reserves like, any debt with purchase.