SFH Reality Check: What “Safe” Really Means

[Gia Hermosillo]

Single-family homes (SFHs) are often seen as the safe entry point into real estate investing. One roof, one tenant, one payment—it feels simple and predictable. But simplicity doesn’t always mean safety.

Here’s the reality check: when that “one tenant” moves out, you become the one paying for everything.

While occupied, tenants often cover utilities, yard care, and sometimes minor maintenance. But once vacant, every dollar flows in reverse. Mortgage, taxes, insurance, utilities, lawn, snow, and turn costs all land squarely on you—with zero rent coming in.

Let’s look at the math:
If your SFH rents for $2,000/month and sits vacant for just one month, you’re out $2,000 in lost rent plus another $500–$700 in utilities, cleaning, and turnover expenses. That’s a $2,500+ swing in your cash flow—sometimes enough to erase a year’s worth of profit margin.

This is why strong operators build vacancy buffers into their buy box. A single vacancy shouldn’t trigger financial panic. It should be a known variable in your underwriting.

Smart investors treat vacancy as a cost of doing business, not a surprise event.

• If you’re holding SFHs, add 1–2 months of PITI to your reserves.
• If you’re scaling, explore duplexes or small multis to spread vacancy risk.

Safety in real estate isn’t about fewer units—it’s about better preparation.

Action: Add 1–2 months' PITI buffer to your buy box.
Question: How many months can you float a vacant SFH?

This is Post 7 of 24 in the 8-Week Strategy Series—a roadmap for investors turning overwhelm into strategy. Stick around for the next post!