Paying cash makes complicated deals work.The two ways to mitigate this risk are buying way under market price, in areas that are traditionally deemed stable markets, and taking into account that part of wages from a W-2 employment might need to be used in an emergency towards mortgage payments of a vacant property.So it is hard to evaluate the risk in plain numbers.

.* Have a plan for emergencies and unexpected events, such as natural disasters or tenant issues.* Keep detailed records and stay up-to-date with local laws and regulations regarding landlord-tenant relationships.By following these tips, you can successfully invest in long-term rentals while living long distance and enjoy a steady stream of passive income.

You would be better off using the cash for the real estate and using the HELOC for reserves in an emergency. 3) This is the age old question.

. $4,000 is barely enough to cover a life emergency like a car crash or family sickness.

The inspection report of the main sewer line reads: "Pipe appeared to be operating effectively and there were no immediate emergencies identified.

Our agreements clearly list a dollar amount when we seek approval (outside of emergencies).

It has been almost a year since I finished paying off my debt and starting saving for my emergency fund which is at about $8k now.

I notice it's almost always the low-income, paycheck-to-paycheck tenants that have emergency expenses like flying to Las Vegas for Aunt Bernice's funeral or their brothers wedding that apparently just popped up with no notice. 

You really have to be well emerged in the city to know the good/bad areas

The biggest challenges we face right now are patience and finding direction:1) Patience - before we get our first property solely for real estate investing, our goal is to have six months of reserves/emergency funds saved up.