Reserves are typically required to make sure if something goes wrong on the property, you would be able to fix it, and continue receiving rental income. 

Or did I post this in the wrong section?

I'd really hate to end up on the wrong side of the Feds.

Thats about $340 in costs per unit per month give or take... am I wrong to think that is nuts and it has to be some sort of capital expenditure.

I don't believe he owns them out right but I could be wrong, I will know more tomorrow.

Many people have made mistakes even in "passive" TK so if you don't have a cushion or can't sleep at night because all your money is tied up in one TK and you can't sleep every time something goes wrong  it may be problematic.While most people say being in NYC is tough to get started and they are right there is one thing that is good about NYC which is that the values are high.

@Michael Hartman   There's a TON of knowledge required to be successful in this business because one wrong move can seriously delay your success or even put you out of business forever.

Plus, right or wrong, I have to wonder how many wholesalers are totally explicit about the fact that they're wholesaling the property to another investor, even if it's just something like referring to the buyer they find as a "funding partner."

My apologies is this is the wrong forum or it has already been posted - I searched forums and didn't find anything specific to Columbus.

Start by fixing things that are wrong (ex. water leak and any damage), then get firm with the tenants and either straighten them out or kick them out if they're not interested.