I recommend, in my area around $750 per door in reserve for the oops, that happens. 

Since this was my first real estate deal, I was very able but limited by my financial reserves.

In most of CT, I would go into any investment with no expectation of natural appreciation.

@Alfred HarrisThere are some low interest loans available for low income housing; some tax credits; and possibly property tax abatement.Grants, when available, are reserved for non profits, often sponsored by a church or similar organization.

A much more costly option then since materials/labor will naturally be more expensive, all new granite again, all new backsplash, etc. 

Plus doing DD on a condo/townhome theres another step of doing DD on the HOA's financial health;  reserves, any big repairs coming up?   

How much would you recommend a new investor keep in reserves for purchases?

If your numbers are tight to begin with, anything going wrong at any stage -- purchase, rehab, renting, refinancing -- can put a strain on the deal.Don't do the deal if you don't have reserves and can cover holding costs.Expect 8 months of holding costs because typically you can't refinance until 180 days post-close, and then it takes maybe a month or so to actually refinance from there start to finish.If you can't BRRRR comfortably (e.g. leaving money in the deal or not cashing out) then it may not be a good idea until you're ready.Most lenders will be around 70% LTV, not 75%.

You can even keep these upgrades in reserve for right before or in negotiation for a renewal or rent increase. 

#2 - It sounds like you are going to be tight on operating reserves. and 8 to 10 cap MultiFamily is indicative of significant risk.