Should the inspection concludes that the property possesses fundamental flaws which renders the property Inhabitable and /or the repair costs of those flaws would equal or accede the sale price of the property, the Purchaser then reserves the right to remove himself and all his obligations of this contract and the seller agrees to refund the earnest money to the Purchaser in full."

Wholesaling in the right market is definitely the way to build reserves for buy and hold.

Drop back and punt, you don't get the ball back until you get some basic real estate knowledge and know too, trying to buy a commercial property also requires management and experience, cash reserves as well as your money in the deal.

After allowing for soft costs (repairs and vacancy) reserves of 12%, I look for a 12-20% cash on cash return.  

Drawyan,You can try to take some money out of your first two properties by Refi, home loan, or HELOC.I would like to have more money reserve at hand while holding it.

I have worked in the security & investigations industry about 20 years now and Im also a Reserve Law Enforcement Officer!  

I just read a WSJ report citing Bankrate a banking analyst, that 3 out of 5 Americans do not have the reserves to withstand the most mundane unexpected expenditure, "The survey found that an unexpected bill would reduce spending elsewhere, while 16% would borrow from family or friends and 12% would put expenses on a credit card. 

I would keep a high reserve and make sure the property is cash flowing with a rental contract in place and rent rolls to present to the lender with loan to value ratio for the value of the property.

. :)Simple Waterfall: after all expenses and reserves, invested dollars get a pref return of x% annualized (annual return in dollars divided by 365 x number of days in the period).

I've been trying to refinance this property for a few months and am having a very difficult time finding a lender that seems to fit the model of what I'm trying to do here.I'm trying to refi for around 70-75% of he ARV which is just over 300k.The rent roll is $3350 a month and after reserves for taxes, insurance, etc. it should cap out at around 10%.I'm trying to keep the title in the business name.