Use this money as your reserves so you never have that same feeling in your stomach as you had during the worst of the pandemic. 

@Gaurav Chaudhari, only sign up with company that the has rating of  A to A- (confirm the rating by googling the company) , also make sure to get dp3 coverage and replacement cost and not actual value. 

My concerns with the deal are I would be almost 100% leveraged and I would be using all of my cash to put the $20k down so I would be left with no cash reserve.

It seems most lender requires 2-6 months reserve for your mortgages.

They are also mitigating their risk of a weak buyer (who has limited down payment and likely limited reserves) by setting up a balloon.

   $12,000 for additional repairs/reserves and dispersing $130,000 back to the investors.  

I'm more conservative in my approach but I'd say you at least need to have enough for the down payment, closing costs, etc. plus a healthy reserve so that you can cover a vacancy of a few months as well as the ability to cover the costs of any unexpected maintenance and/or capital expenditures.

You can probably confirm this by going back further than the TTM.  

I want to get deals 2 and 3 as soon as I can without depleting my cash reserves.

Hi @Palmira Angelova Take what you think you need (roof and systems) and keep 20% more in reserves for what you don't know.