I didn't think about putting an allowance cushion on that, that's a good idea.

THe one that's the serious purchaser of STR , are mainly professional investors, where have lot of cushions and understand the risk appropriately2. there's layoff, but mainly in tech, but who cares.

Some gurus go as high as 70%, IMHO that is too high, leave some cushion for your private money people to sell in case you get hit by a bus.

If you have a $1,500 or more spread between cash flow and living expenses, I would consider saving the rest to add to a cushion. 

I'd suggest not noting things like "stabbed coach with a knife" and instead "7" long cut in left cushion of couch" and "4 sq ft area of carpet under den window coated in an unknown substance that stained the carpet". 

Eventually as you get more experience and capital cushion the fear gets less.

Could really give me that cushion moving forward.

Can you get a line of credit to use to give you the cushion you need and still pay the mortgages?

It will be tough to find a lender with that little down, but my bigger concern is those markets are higher maintenance markets and lower home values, which if you do not have a very nice cushion in reserves it can crush someone, so I would also make sure if you get a property that you have sufficient reserves to handle any cash crunch.

@Trevor CrabtreeCheck the math and the rents and make sure to factor in your cash flow calcs for maintenance and a cushion for bad actors especially  out of your area.