Now that you have the correct terminology, you can search for lots of potential solutions. 

Starting out can feel overwhelming, but it's great that you're already thinking about risk management with vacancies.

@Jordan Kaylor, financing aside, how are you going about sourcing potential deals?

Auction buying is a risk just is..

Hey Rachel,I can't help you because of the location but you're going to have an extremely tough time finding insurance for that type of risk. 

Whether the lender decides to do anything, and exactly what they decide to do depends on the lenders particular strategy, target ROI, risk tolerance, current interest rates, interest rate of subject mortgage loan, etc. 

  $200/month divides into the $100K initial negative equals 500 months to recover the initial negative equity.Let's double the cash flow to $400/month.  250 months to recover the initial negative equity so over 20 years.Let's reduce the negative equity position to $50K (which likely is less realistic than expecting $400/month cash flow at that rent point), you are at over 10 years to recover the initial equity position.Now let's do it with all cash, no financing.The 50% rule state $900/month cash flow.  900 * 12/200K = $5.4% or about half of lifetime return of S&P 500, or what can almost be achieved with a zero work, zero risk CD.I see no way that someone who understands the numbers will call this a good investment.Note just because an investment is better than most other investments in a market does not imply something is a good investment. 

Done multifamily, SFR, STRs... and finally found the niche that I love the most and believe has the most potential for decades to come.

Most wholesalers are not good at what they do, are unlicensed (which is illegal in most states), and lock up the property in a contract with zero risk to the wholesaler.

We're probably not going to take the risk if we're busy agents to play that game.