Quote from @Derek Robinson: Quote from @Jay Hinrichs: Quote from @Derek Robinson: Quote from @Eric Gerakos: I heard that he has added another “E” and is going by “Steeeve” now.

Every lender will require 6 months of reserves and it can be in a 401k or retirement account, as the money doesn't need to be liquid. 

Quote from @Jon Martin:  Plus they have plenty of liquidity because they hold our earnings hostage from booking until check in and collect interest on it, which may be the most genius part of their business model. 

It is not built for real estate; thus, most people trying to DIY their rental property bookkeeping will struggle and may miss deductions, incorrectly categorize transactions, and hand over incomplete or inaccurate financials to their CPA.I would look into rental property specific bookkeeping software, which will track income/expenses by property, the chart of accounts will mimic Schedule E, so you can ensure all categories are being tracked, and you can export a Schedule E report and hand it over to your CPA.

And you need to show a personal financial statement with a healthily net worth, showing where your assets are tied up in illiquid investments and why you can’t invest personal cash without suffering a servers liquidity discount if you sell assets.   

Since I’m about 600k liquid right now.

Secondly, if you are mainly saving up to purchase a rental property, these funds probably won't be liquid for several years after you invest.

Drop it into 4-week US treasuries for the highest yields with reasonable liquidity.

Schedule E & tax-friendly reportsLook for software that generates Schedule E-ready reports and tracks depreciation.

They also usually include features like property-level reporting and depreciation tracking, which you’ll need for your CPA.Lastly, make sure whoever you hire can give you a clean Schedule E report that your tax preparer can use directly.