Growing number of properties

[Hasnain Akram]

I have a basic newbie question about growing the number of properties I own. I own one SFH which is slightly cash-flow positive, and based on savings and income from other sources, I can likely tolerate a few months of vacancy. However, if I expand to, say, 3 or more properties, or even multi-family, there's likely no way I can foot the monthly payments if all homes/units were to become vacant at the same time. So how to avoid this risk while still growing my real estate portfolio? Or is it unavoidable and am I just hedging on multiple properties not becoming vacant simultaneously?

It seems to me that growth without significant equity already in place in a portfolio comes at the expense of risk from over-leveraging, unless I'm missing something. 

[Thomas S.]

The more doors you have lowers the financial risk of vacancies. Because more doors creates greater cash flow and multiple vacancies is uncommon you are actually more financially secure when they do occur.

It is the same as owning a SFH or a multi. A vacancy in a sfh is a 100% loss of income, a vacancy in a multi may only be 25% loss of income. The reality is that vacancies are not as big of a deal that small landlords make of it. It's mostly fear mongering.

The more doors the greater your financial security. If you fear risk do not invest.