If I ever have a repair before there are sufficient funds in a particular account, #1 my largest PM will take care of it with their 1-year warranty or 2) I will take it from the operating checking account where all the free cash flow sits (until I have enough to eventually start buying additional properties with it).  

Borrowing on these types of property is a little tricky and you need to make sure you’re working with a lender who has done so before.FHAIn order for a bank to lend on a 3-4 unit property, the property must pass what is called the “self sufficiency test.”

I always recommend 1 million but 500k is probably sufficient.

In my opinion, it's the borrower's job to ensure there are sufficient funds in the account and it's the servicer's responsibility to make sure they pull the funds timely and accurately. 

@Pamela Mishra Yeah, the “self sufficiency” test is a basic requirement that should have been looked since the beginning.

He has posted them on various FB forums asking if people would consider this sufficient proof of rent, and whether or not the tenants are paying and are up to date.

I will send a small token as a thank you.

The ones that sit on market; you should NOT be buying without a solid rehab background and sufficient knowledge of the area.  

These types of properties rarely have sufficient and accurate P&L's to arrive at a true cap rate, plus, residential properties values are based on comps, in comparison to commercial properties which values are based on the income they produce.

Hi All - so my wife and I own a vacation rental property on the beach that is 100% self-sufficient and pays for itself out of it's own bank account (that I opened just for that property and any other we acquire).