rental property vacancy savings

[Monica Evans]

Hi Everyone,

I have a question about saving for vacancy on a rental property. My husband and I are analyzing numbers and are struggling with this concept. For this example, rent is $1400/month. If we are saving 5% per month for vacancy, that is $70/month. The mortgage payment will be $1000/month so if we were to have 2 months of vacancy, we would need to pay $2000. That is over 28 months worth of the vacancy savings in this case. 

Are we missing something? 

If any landlords out there can weigh in on this and point out anything we're missing or provide clarity, we'd greatly appreciate it!

Monica