We have spoken to the city and they are wanting the building to be comverted to multifamily because of lack of affordable homes.

A reserve is unnecessary, but I still keep around $15,000 - $20,000 in my account.The point is, that you should sit down and assess your finances to determine what the worst-case scenario may look like, how much you would need to cover it without impacting your life, and whether you will need to build a reserve.

Let me here what you would do with the scenario.Purchase Price:40KRehab: 40KTotal Loan From Lender after Rehab: 80KARV: 130KFair Market Rent: 1,200 Mo.If this was your very first purchase, with a goal of wanting to scale, and build a portfolio based around LTR, and Fix and Flips.

DSCR is not necessarily a better option in this case, they still need a solid collateral even more so as the building has to qualify more than you do. 

My goals are grand, ambitious, and future proof.I plan to build affordable homes in a way that is self sustaining, and desired by many.I plan to invest into Single family homes, and multi family homes to get the individuals who live in them a better life.I live in Utah, so the market is not the best.

The percent returns are typically not much better, its just you make more money on a $10M building than you do a $100,000 asset. 

Is anyone leasing up / building micro commercial / industrial flex (250-700 sqft) spaces?

Whether you live in the same building, next door, or two states away, it is important to set boundaries with your tenants.

Even with the current market inventory is moving since it is a more affluent market used for building your equities and long term wealth. 

**Roof Repairs/Replacement**: Ensuring the integrity of the building's roof is vital for tenant comfort and property value.2.