I plan to start my REI business by wholesaling to build up capital for reserves and then, eventually, transition to the flipping and buy-and-hold business. 

But you can only dig so deep on tenants who are already in place - It's not like you can ask for bank statements and credit card balances to confirm each tenant has sufficient reserves to meet the remaining term of their lease - So past performance is no guarantee of future performance.Ultimately, those tenants have a lease that you are contractually obligated to honor (just like they are) until it is terminated one way or the other.

Each one of those areas has some blocks and properties that can make you money, but the neighborhood as a whole is always stuck in a boom/bust and crime cycle that prevents it from really taking off like Fells Point-Federal Hill-Canton. 

Hi @Jacqueline Bustos I would take advantage of the fha loan if you can and leave yourself some cushion in your account for reserves. 

I think this is how they are doing it:"There is no requirement that a private landlord participate in the federal Section 8 program and it appears that he could adopt a policy of not renting to Section 8 tenants for all of his units.

Do you have the capacity and reserves to make it happen? 

I’m looking to purchase my first multi family and raise capital to have enough reserves for it and so on.

The minimum credit score required is 620 & the ideal credit score: 760+What kind of reserves are required per property?

I think it can be a great idea to utilize the LOC as long as:The property will still cash flow well with the additional leverageYou have adequate (extra) cash reserves, just in caseYou are able to aggressively pay down the LOC to deleverage and make the funds available for a future use

You can delay movng forward with it but at least she will be more motivated to get this resolved.That being said, this is what cash reserves are for.