I wasted my time at auctions where the bank set a reserve price, don't tell you about it, and I get a letter in the mail saying "no go" because the bid is under the reserve price.As to how banks look at it, the mortgage due is the determining factor.

If you plan on buying condos it is critical that you review and understand the Governing documents for the HOA you are potentially buying into as well as understanding the current operating budget and reserve funding plan.

Here are some details:Purchase Price - $885,000Down payment - $177,000 (split by four partners)Initial reserves - $23,000 (each partner brought $50K to the deal) Principal & Interest - $4,500/monthTaxes & Insurance - $2,200/month2020 gross bookings - $86,0002021 gross bookings to date, including ROY - $91,000We have never had a cash-call and now we have built up our reserve to the point that we can really invest in updating the property, or we could take the house off the market and use it ourselves and just absorb the revenue hit.

The rates with 10% down are the same or better than with 20% down on a conentional loan and you do not have PMI so your payment is lower, and you keep more cash on hand for furnishing your next STRs or cash reserves for maintenance/capex, etc.

Another question they will ask is do you have at least two months of cash reserves for each property you intend to have as a rental? 

Quote from @Vivan Bhalla: $1,000 cashflow per month (after all expenses and reserves) is uncommon.

There are lots of ways to play the game to win, but I really think it starts with reserves.

I have cash for a down payment but considering saving it for reserves and looking for more creative ways to more cash flexibility.

They won’t mind at all (it’s what they are there for).Look at rental rates around each house to get a close ballpark price for  what you can rent each property for.When we started out we wanted to make at least $300/month per door on a property… so a duplex we wanted to make $600/month after Principle, interest, taxes, insurance, and a $100-$150 maintenance reserve.  

Just spent $15k getting exterior of the house updated which wiped out most of my cash reserves.