The Vacancy Test Every New Investor Should Run
Many new real estate investors focus on rent first. They look at the expected monthly income and compare it to the mortgage payment. If the rent appears higher than the payment, the property may seem profitable. But rental property math needs to include more than the best-case scenario. One of the most important questions is this: What happens if the property is vacant? Stress Test the Property The vacancy test is a simple stress test for an investment property. It asks whether you can still handle the property if rent stops temporarily. Vacancies can happen between tenants, during repairs, after…






