Question about conventional financing for third property

[Account Closed]

My short term goal is to buy a third property, type of property TBD. I have some questions about financing the deal.

I currently have two properties; A single family (primary) and a townhouse that generates rental income. Conventional financing seems to be the recommended approach to financing a property—especially if you have a 9-5 job. In my limited experience however, it’s my understanding I will need to be able to show that I have a certain amount of cash reserves set aside to maintain my current properties in order to get bank approval. Is this a correct assessment? 

[Doug Omenski]

to get a conventional loan on a property that you do not live in does require lists of cash reserves. Since you are useing a non-commercial loan, the banks genneraly don't care that you plan to rent it, they just want to know that you can pay for it even if you do not ever get a tenant. On my recently purchased property, I used my 401k that I can borrow from and the cash I had saved up for the rehab as reserves to show the bank. I also found a great local mortgage guy with a local underwriter. They worked with me much better than going to one of the big banks. Most bigger banks (Wells Fargo, Quicken, etc.), just told me no immediately.  It wasn't until I went to the smaller, local banks that I found someone who wanted to help.