Most are still looking for 6 months of reserves on ALL mortgages.

And said security offering would have to have Notes and or substantial cash reserves to back this up.

On a side note, the 401k balance is sure making it easy to get approved for financing and will also come in handy when I have to show 6 months of PITI reserves on all my properties when I surpass 4 mortgages.

No reserves with actual monthly expenses running around $2800 split between 10 units on an 8 yr old building. $1500-1800 of it going to gas and electric for the pool area.Add the Agent telling Me to expect a hold time of 3-5 years, for the market to come back.Sounds like to much exposure.

Ongoing Maintenance (@10% based on 100% occupancy): $130/moCap-Ex/Maintenance Reserves (@10% based on 100% occupancy): $130/moTotal Other Expenses = $553/moFinancing: 20% down, 30yr fixed @5%.

If those run out getting rid of your credit card debt could become more important, and when the interest rise, so do the payments, which would hurt you on DTI.I am a big believer in leveraging, if I can put $15k cash into a house that will throw off $300-$400 a month, I don't mind borrowing that $15k if I can get a long term deal on the money (which i often have to do to keep reserves at the proper level),,,but I have an exit strategy, if everything ever starts to cause a problem I sell one rental and pay off all non-mortgage debt.

All that being said, we will net over 2000 a month in reserve monies at that time.

Keep enough in reserves.

If the other agent found the deal first, that seems to me more than fair to buy it from the other agent especially if you are having reservations even telling me about the deal.

When renting out property, you need to reserve enough monthly to cover those future hits.