The U.S. average vacancy rate is 7 percent.

The need for backup cash in this case is primarily for the possibility of vacancy or deferred payments longer than expected during this hard time while people are required to stay home and many needing to find new jobs.  

Yes, be smart, take a more conservative underwriting with larger vacancy returns.But I feel like you should still be looking. 

The mortgages are small enough if they have a vacancy, they can cover the payment, and the odds that all properties going vacant is pretty low. 

When you look at what they are comprised of - long term tenanted multi-family properties with low vacancy etc. it would look like they are currently undervalued (similar to what happened to them in 2008/9).In particular Avalon Bay Communities and Essex Property Trust are the 2 I’ve been following.

What are other Indianapolis investors using as your vacancy rate?

Couple of things are going to happen if the tenants refuse to pay rent for the next 90 days.1) major spike in evictions come the end of the 90 day period.2) market will get flooded with delinquent tenants in the market looking for new homes prior to the 90 day period ending to avoid evictions and ruining their credit So everyone be aware if you randomly have so many calls for your vacancy say around mod June .Us landlord should stick together and refuse these opportunist move into our properties because they just decided to be irresponsibleAnd not pay their rent when they could.

Multiple rents also help offset vacancy risk.

hopefully things turn around but i know in the complex i am in there is about a 50% vacancy rate for a year or more and i am doubtful this will improve it much.

@Marco Morkous we had a vacancy that we filled this month-ten days ago.