I have about 20k saved up and I'm hopeful I will get an unsecured LOC to be able to use as reserves and minor rehabs.

For most banks, the "10 additional events of default" you found in your loan documents are generally reserved for the second scenario.  

Speaking about "Reserves", one of the lines says: "6% of the aggregate UPB if the borrower has seven to ten financed properties (DU only)".

We use financial models that calculate our gain on sale or REO or, additional lost against reserves already booked on REO.

@Matt Bailey,It all depends on your goal and strategy... if you're doing a traditional investment property, banks will want to see 20% down, and 6-months of reserves (including the new mortgage) available.       

There is no shame in deciding to wait a year or two, until you have more cash reserves built up.

It depends on the HOA ByLaws.Some HOA cover roof, driveway, even some exterior features (A/C unit, porch, attic), some HOA don't even have reserve fund.

I really need to take this advice and build a little more cash reserve.  

Current StatePurchase price: 77500All in: 23902Balance: 57038Rate: 4.125Monthly P&I: 281Monthly Insurance: 82Monthly Taxes: 135Management: 76Monthly Vacancy Reserve: 48Monthly Capex Reserve: 85Monthly Repair Reserve: 59Rent: 950Monthly Cash Flow: 202  Possible RefiZestimate now (Zestimate was accurate -- within 1k -- at time of purchase): 108346 New loan (75 LTV, with 3k for closing): 84260Estimated New Rate: ~5.125New Monthly P&I: 281Cash out: 24000...New Cash Flow: 33

I am taking on the loan however to hold cash for any good deals that pops up (which there is still at Jackson MS) and to have as reserve for the near future < 3 years which I feel the real estate market will have another adjustment and position myself with cash necessary to close deals.