If the borrower intends to use the same asset to satisfy financial reserve requirements, the lender must reduce the value of theasset (the account balance, in most cases) by the proceeds from the secured loan and any related fees to determine whether the borrower has sufficient reserves.""

. :) I saved up for a while so I have cash reserves.

Apartment complexes are the natural progression for RE investors after they have earned respectable cash reserves.$100k is a pretty respectable amount to consider investing in an apartment complex( 12 to 25 units perhaps) which gives you lot more benefits with lesser work, due to economics of scale.But apartment complexes are a totally different ball-game compared to single family and requires a knowledge base considerably different to that of single-family knowledge base.Having said that, I know people with sizable cash reserves who jumped right into apartments without touching SF houses.Based on your post, I cannot advise you to invest in apartment complexes because it seems to me you need to get more experience/knowledge under your belt.

If he doesn't have adequate reserves that could really put him under.

cash flow - I try to hit ~$400 per SFH (after property mgmt, mortgage, taxes, reserves, etc.)Cash on cash ROI - I shoot for a 15%+ cash on cash (over the long haul).

Also, 3.5% in taxes is higher than normal (in my experience), so factor that into your reserves and your analysis.But, given the basic information, I would definitely pursue it further by doing some due diligence and putting together a more detailed pro-forma with actual expense/cost numbers and your specific financing details.

If you need $25k for the down payment, do you also need 6 months reserves to qualify?

Buying real estate without money and without a reserve fund; is a recipe for disaster.

It is reserved for tenants only and each tenant is allowed one space and must notify us of their vehicle information and keep us updated if it should change.

Meaning the propety has to meet lender requirements such as, having the total ratio of investors to owner occupier owners in the complex (under 50%), the hoa budget and their reserves, any pending litigation and so forth.