Borrower currently owns 3 properties - one vacant land, one investment, and one primary res.  He's buying a new primary res, and converting the old one to a rental.  Guidelines are clear that we need 6 months reserves on the converted residence.  But I seem to recall from prior experience that we do NOT need additional reserves for any existing rental properties.  Is that correct?  I don't see anything in guidelines that suggests otherwise, but want to confirm.  Thanks!

There are no additional reserves required for investment properties currently owned by the borrower.  Per the product profile for DR’s Only Expanded there are reserves required for the primary residence and if the borrower is retaining their current residence to be sold later or converting this property to a rental property.  A currently owned investment property does not require additional reserves.