Rentredi not resident!

Some lenders may require 12 months reserves, however there are a few that do not have that requirement. 

It takes money to advertise, it takes money for closing, it takes money for payments, it takes money for reserves, but it's made up for in the Option Fee received.

Remember: with a conventional loan, you typically need six months of reserves for owner-occupied multifamilies.

If a project drags past your original timeline, do you build in extra holding cost reserves, or do you try to refinance mid-project to save cash flow?

If you do not have HEALTHY cash reserves, you'll run out of money. 

Quote from @Hunter Foote: I’ve been seeing more interest lately in sober living homes (also called recovery residences) as a niche within real estate investing.

Lenders are tightening up a bit — higher DSCR requirements, more reserves, and tiered pricing.

That means they’ll review your credit score, income, how leveraged you are across all your properties, your previous year’s tax returns, and your current-year financial statements to see whether your rental portfolio or business is actually profitable.They’ll also consider your debt-to-income ratio, how much cash reserves you have, and whether the property itself is generating positive cash flow.

Quote from @Cinnamon Russell: @Bob Dole wow this is insightful, with the price of homes these days plus, the cost for operations( mortgage, reserves , insurance, etc, plus  placing each home in an LLC.