Paying mortgage when tenant is late on rent?

[Valerie S.]

Hello everyone! Newbie here and preparing myself the best I can for my first property. Curious how you pay the mortgage and eviction expenses if you have a problem tenant? If there ever was a need to spend money for eviction, would you use money from the typical expenses budgeted in to rent anyways?

[Jessie Dillon]

- go into every property with adequate reserves. i personally think 10k/property is good. once you have a ton of properties, maybe less would be ok, but it depends on the conditions of those properties and your personal comfort levels. and your monthly debt on them.

- if at all possible, don't try to live off your rental income until your cashflow AFTER reserves covers twice your monthly cost of living. it's a dangerous game up until then.

- having lines of credit in addition to all that helps me personally feel more secure.

hope this helps!