Test a setback

Fictional practice: See if the plan holds up when rent drops.

• What-if: rent falls to $2,400, and the savings for empty months and unpaid rent rises to 10% ($240).
• In this what-if, management is 8% of the full $2,400 rent ($192); many managers charge on rent collected instead, so check your agreement. Other running costs add up to $575.
• The loan payment stays $1,496.93, and the replacement reserve stays $125.

Check what insurance won’t cover, repair risks and legal limits on renting that could make a bad case worse.