Increase your vacancy rate, and run the numbers with a longer time to rent.

These workers are able to pay ~75% above market rent, and even with a few months of vacancy I come up on top.

Was scared of the vacancy so finally put someone in it.

Should 3-5 months of the mortgage be saved before the project for that initial vacancy?

Side note: Think about this... if the Coronavirus is spooking you, how will you feel about a long vacancy, eviction, bad contractor, tenant damage to your home, etc.

@Edson Cruz interesting reading. vacancy of 3% is 1 month vacant out of 33 months.

You were never cash-flowing $1200 to begin with.When you factor in vacancy, CapEx, maintenance, property taxes, insurance, etc it adds up.

The shorter mortgage means the cash flow is very tight and any vacancy would mean you are paying out of pocket.

So you should be looking at:Gross rents- vacancy- repair- capex- property management- HOA- utilities-any other operating expense

We can create equity in multifamily real estate by investing in our assets to grow rent, improve vacancies and by cutting expenses Avoid high end real estate – high end real estate always gets hit first in any downturn as people migrate from more expensive to less expensive homes.