The reserves can sometimes be in the form of securities but it’s not often a 1:1 exchange for reserve dollars. 

It was fully reserved for this period of time.  

The bank is giving us a 6 month, interest only period, so even with current undermarket rents, we'll cash flow nearly $2K/month after expenses, management and reserves (which we'll be using to further build our cash pool). 

Airbnb/VRBO payouts have gone to the owners bank account and then they write us a check for every reservation that includes our 20% + cleaning fee.

After expenses including remaining mortgage is cash flow of about $1-$2  thousand per month  assuming all rents are paid and no major repairs...also we don't really have cash reserves for major repairs...trying to save, but these are old units and the $1000 cash flow keeps getting eaten up with new roofs,  AC units etc every once in a while and we are trying to make extra payments on $23000 loan to get it paid off in a year..   

If you don’t have sufficient reserves you’re at the mercy of short term trends.  

So I would also recommend buying in appreciating markets as well as saving up more for a down payment and higher reserve budget.

Remember HOA dues never go down.Another thing to look for is that the association has the proper repair reserves. 

I do not however want to evict as I need the cash flow to start out and not blow my reserve while I clean, refloor, and paint units.

I still own the property, but because my interest rate sucks and the taxes are absurd in Cleveland, it only cash flows like $67 a month after reserves.