Reserves not only include cash on hand but also the ability to cover unexpected expenses.

If you dont have sufficient reserves and cant find tenants, then yes will fall behind on your mortgage.The good news is that if your rent is priced right, you will not have a problem finding tenants.  

You need to keep some reserves and to make sure the property pays for itself and gives you an income flow.

On the nicer homes, you will be (i.e. need to be) establishing a vacancy reserve with 8% of the rent each month, and that will tide you through the turnover, simple as that.

You could then just enjoy high cash flow or refi and get money out to do another deal (Or at least replenish your cash reserves).As I was writing this I got curious about the area and did a quick little search of stuff and it is much stronger than I would have randomly guessed.

However, I'm not sure if this is a great property for you unless you have cash reserves elsewhere..

I think that (same as overleverage/not enough reserves/etc) are the reason some soured on REI.

If you don't answer questions, we reserve the right to pull your ad or to kick you off the site.We work hard to put together rules that protect our membership, but we do need help.I am the first person to urge people to be cautious with others and I absolutely want you guys to report people you think are up to no good.Thanks again for the warning, @Pete T. .

Slow down and pay off some debt Alternatively slow down and build cash reserves. 

After 4 loans it gets a bit trickier wrt reserves. - how long do your projects usually take for complete turn around?