Such as prolonged strings of vacancy, loss of your income and ability to service the debt, unexpected major repairs if you don't have the reserves to afford them, etc. 

Going to be tough sledding with bad credit but if you have cash reserves you don't need much credit. 

Make sure you add in the right amounts for reserves, management, maintenance and repairs, etc. 

Make sure you know the pros / cons and be prepared (with cash reserve, etc) when things don't go your way.  

I've lost my job of 3+ years, was out for 3 months draining personal reserves, now back to work again. 

I am studying for my brokers exam next week and don't need MORE confusing ideas:) Anytime, John:)  If I wasn't asked, I wouldn't have expounded at all of course.I just reserve the right to receive my portfolio rental income as mgt fees or not and don't decide until year-end. 

I read that in order to get a second property, you need to demonstrate that you have enough cash reserves to cover the mortgages of both properties for 3 months, essentially having 20k plus on hand. 

I will need $30,000 per year in cash reserves for down payment and costs.

Systems like that usually are reserved more for commercial applications, you may want to talk to someone like Seimens or another controls company and see what they recommend.

The 20% put up by you would go into a reserve account maintained by the lender and would pay no interest while being held.