However, I did some more digging and eventually found out that they had next to nothing in their HOA reserve.

In other words i would be buying the loan from the bank, waiting 60-90 days until it goes to auction and then setting the reserve to more than the property is worth then taking over deed.

It's no more deadly than the common cold.That said, with all of the media hoopla about it, are you seeing any impact on your STR reservations? 

@Scott Kirk I have seen a few in the forum that answer questions, and this is federal questions so wouldn't have to be local.

You really need to have some money in reserve for BRRRR deals because unlike with flips, there's no margin of error if you don't hit 75% (plus refinance costs) you'll need to put some money into it or bring some money to closing. 

Please let me know how to do this.Jarod congrats, now please share the following info to analyze your deal Ill shoot back a quick review.Monthly Operating IncomeMonthly Operating Income: $Monthly Operating Expenses (Don't forget these are MONTHLY numbers)Property Management Fees $Repairs and Maintenance $Real Estate Taxes $HOA $Replacement reserves $Utilities paid by you if any $Pest Control $Accounting, Legal & Advertizing $Capitalization Rate and ValuationDesired Capitalization Rate %                 (if you don't know its ok)Actual Purchase Price $Loan Information Down Payment $Loan Amount $Acquisition Costs & Loan Fees $                 (Points, Title, Escrow etc)Annual Interest Rate %    

I've got money saved in reserves and I'm analyzing cash flow for several different properties. 

Expect a minimum of 35-40% down and 10-15% cash on hand reserves in the plan to obtain such financing.With respect to growing your retirement, you need to find entirely stand-alone ways to put the 401(k) to work.

I would look at this as an investment first, so calculate what the true NOI is if you rented out both units, have management fee, reserves, etc all calculated in. 

I like that you have > $250 per month in reserves.