This year I took a 30k disbursement and next year the LLC is buying a new fancy truck for cash and there will still be piles of reserves.

Also, have a good amount of reserves and a backup plan in case regulations change, because the Airbnb/VRBO short term industry is still new and changing.

Most economists agree we are due for a correction so having reserves for each property is key.

Many new investors underestimate the importance of capital reserves. 

They will confirm it's not a problem.

I would put the minimum down that the lender requires plus closing costs, have an expense reserve for repairs, and any left over, that's the start of the war chest for future deals.My two bitcoins.

I would absolutely ask to see the bids or documentation to prove what they are saying to confirm this!

This money is set aside to build a reserve and keep things running without dipping into your personal funds.Using this basic formula, you would be $400 in the negative every month.

It will look at your reserves and see if you can cover when a situation arises.

There's also typically a liquid reserves requirement of 3-6 months of loan payments and that you have 10% of the rehab costs.