If you buy all cash do you need to deduct monthlyfor vacancy

[Richard Kay]

Hi all. If I buy a rental for buy and hold and I pay all cash, do I need to deduct from my monthly income for vacancy. I understand that when you have a mortgage it’s wise to put a little money aside every month for when your property is not rented. But if there is no mortgage that cash could be profit. Am I correct?

[Tyler Mullen]

You put it in your numbers for when you have a loan on the property in the future.  Also good to be in that habit for later on when you're sharing deals with others...

If you're all cash buying and you have a reserve fund to backstop any expense on the house, then in practical terms you probably won't specifically earmark any of the monthly income "vacancy", but yes, it's still "in there".