Vacancy in rental properties

[Ian Jackson]

hey guys, when you guys do a house hack or purchase a rental property, you obviously have debts you needy to pay off like that mortgage. But if the banks lets you use the income you get from the property, and there hasn’t been a tenant in a few months, do you pay off that mortgage out of pocket evrrytime? Should you always have reserves when purchasing rentals? Is it always necessary? Would appreciate any insight possible. 

[James Edward Lee]

I don't think a bank cares where the money comes from as long as it pays the mortgage.  You have to pay the mortgage any way possible.  Reserves would be the right idea when purchasing a rental property.  Let's play it out as if you don't have reserves.  You have to pay out of pocket then.  

I would suppose that if you live in a tourist area, you could always perform as a AirBnB to make some money off of it.

I guess it's possible to not pay the mortgage and let the bank continue sending you letters until they foreclose, but that is not a recommended action; unless you want to lose the home.