Hey everybody, When financing/refinancing investment property, it seems a 6 month PITI reserve is the normal requirement for all properties owned. 

Our best protection comes from having a good team of service providers and vendors that offer good quality services/products at a reasonable price... and adequate cash reserves.

I also generally allow a 5% vacancy and 7% maintenance reserve or soft cost in my calculations for ROI.

Tough to finance a deal at the level with 500,000 and 200,000 in reserves for his 700k.Conversely you could nab a national tenanted strip center with a few mom and pop sprinkled in for a good cap rate in the 2 .5 to 4 million range.

Note that banks will usually require you to have operating (and possibly rehab, if applicable) reserves on top of the down payment.    

We just sold one of our properties in Lansing with 10k down and seller financing and are starting rehab on our second one soon.Keep in mind that you will need a reserve for once you take over the property to cover any big ticket maintenance issues.

Again if you're credit is decent you can use your $50K for downpayment and reserves.  

So your numbers look reasonable but I didn't see a CAPEX reserve?  

Also, there will be times when a tenant does not pay on time, but yet you still need to pay the mortgage… So you will need additional cash reserves for this.

Having decent credit and some cash reserves will help with some lenders.Jon