I think its a safe bet to have 2-3x your expenses in cash flow to weather this uncertainty.At the end of the day, real estate is not passive.

They can't do the math, don't have enough cash to weather a storm and they have a mind-set where they focus more on profits than they do on risks.There is so much more profit when dealing with even small multi-units vs. single family homes and if you can't understand that then you should not be investing in real estate.

There are four important basic building blocks which help a person have a strong enough foundation to weather the stressful times. 

Absent the diversification, we recommend having high reserves to weather any challenging times.Best wishes.

@Vani Anand, probably a long shot, but what would the numbers/forecast look like if you held your primary residence as a long-term rental and then house hacked the next acquired property?

Hello BP family,
Been looking into long distance investing in the Reno/Sparks area for small MF doors. Buy n Hold for 5+ years. Anyone have first hand knowledge/experience on the housing market and economic growth fo...

So heres the deal.Its a 2 bedroom Condo.Asking $159,900 Looking to put down 20% ($31,980) -Condo Fees are $374 per month ($4488     Yearly) -Property Taxes $952 Yearly -$127,920 mortgage @5% (Probably High)    =$754 per month ( $9048 Yearly )Total: Expenses for landlord = $14,488$24,000 - $14,488 = $9,512 Yearly Cashflow$9,512 / $31,980 = 29.7% Gross ROI$9,512 × 60% ( Subtracting 40% or vacancies, etc) = 17.8% Net ROIMy problems is that it's a condo so I'm held victim to condo fees and we are in a down market and so I have to be able to weather the storm which I will be able to handle even if it didn't have renters in it each month. 

ATB will count your forecasted rent towards your loan application whereas the big banks don't consider it as a factor.

Without implying any prediction or forecasting, it is possible for even someone doing everything right to suffer large losses during a recession.

Rented a small two bedroom to a young unmarried couple, never one of the most reliable renter groups, but it was November, and within two months the boyfriend has moved out.Of course no comment to us, rent was not late in January, but that looks like stormy weather ahead.Thinking about sending the boyfriend a letter reminding him he signed a year lease and is legally responsible for the lease's responsibilities.