As for a separate personal reserve - yeah, if you expect major repairs, extended multiple vacancies, a credit freeze and a job loss to happen to you at the same time, hypothetically you may end up needing it.

Too much weight on one side of the pendulum usually tips the scale on growth potential.

It was a $10,000 loss.  

I don't plan or even think about failing, because of my purchase strategy, but I have an emergency fund in place in errr when that time comes and by fail in my terms that means taking a loss on a property instead of a profit.

It's a heavy weight, but someone must carry it :(

@Nick Williamson  sorry, I was specifically referring to replacing or in any way compensating the tenant for loss of their stuff. 

It puts some weight behind your "rent by Thursday or get out" words.

Every other investor does that, they already know what is wrong, and at this level of motivation they don't care - they need out.As for list source - I don't put much weight on those list providing sites.

The bigger guys do more volume so they can can absorb losses on a property here or there because they make up for it with other buys.

I understand there are always different scenarios out there, and sometimes people get into a pickle (i.e. job loss, death of primary wage earner, etc) where they just simply can't make the payments.