What reserves are meant to cover
Reserves help show capacity to handle vacancy, repairs, insurance changes, tax increases, and other property-level surprises after closing.
- Post-closing liquidity may matter even when DSCR is strong.
- More complex properties may require more careful reserve planning.
- Cash-out proceeds may not always count the way investors expect.
Prepare reserves before review
Bring a realistic liquidity picture to the broker conversation. It helps compare lender options and prevents last-minute surprises.