Tenant didn't pay April rent
I own a SFP in Nj. The tenant got laid off from job due to corona virus beginning in march. They have 3 kids and a dog. Their lease is up june 1 2020. what if he doesnt pay may rent then im out $5200. I have bills to pay here too.
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Then you're out $5,200; this is why reserves are important, hopefully you can work out some sort of payment plan with the tenant to be made whole but if not this is part of the risk with RE investing, this can happen even in normal times.
It gets real fun when you are doing an eviction of an uncooperative tenant in normal times and when you add court costs and vacancy you are looking at 3 months+ of lost rent, and the tenant was essentially committing identity fraud to qualify in the first place.