Do you take all your cashflow and stick it into your reserves?

@William Johnny if you only have $250-$500/month you probably don’t have enough to invest now as you would likely need some sort of a down payment and reserves.

Have plenty of reserve cash saved up in case you need to bonus your trades to do your job next. 

Quote from @Robert Bell: As a private lender, we use reserve funds as a way to gage whether or not someone is financially ready to take on a real estate investment. 

Prospective Tenant(s) understands the binder reserves the property for Prospective Tenant(s) until a Lease and all move-in requirements have been properly completed or Landlord exercises his right to rescind.

You have enough money to furnish a property *fully*, and (this is vital) you have enough money to hold in reserves if/when things don't go perfectly, but you don't have enough to put down a 20-25% down payment to own.

I haven't built my war chest of funds yet to keep in reserve, so those first properties probably aren't going to cash flow heavily (especially since everything is more expensive with the last year or two of inflation).

Did I properly estimate the cash not only to buy the property but also the six month reserve funds that some lenders are requiring for non owner occupied units?

OR should I be happy with what I'm already being charged and not renegotiate.Right now I pay 100% of first months rent for new leases$68 per unit month for management$150 for lease renewal$500 in reserve per unit for emergency repairs (this will add up on a multifamily not sure how I feel about that)$75 in person service12.5% for renovation projects and repairs20% upcharge on evictions last one was ($560 total)Thanks in advance for your help it means a lot!

I know of a company that went through a broker like this and the broker connected them with someone That ended up having a pretty bad history and the borrower wired millions after paperwork was signed for “prepaid interest reserve” and now, while they got the judgment, the money was sent overseas and it’s most likely long gone.