A financial storm is brewing. A massive wave of investors who locked in 1.5% to 2.5% interest rates a few years ago are staring down the barrel of a major renewal crunch. When those renewals hit, their payments will skyrocket.
I’ve seen investors panic when the market shifts. They scramble. They stress. They lose money.
But that doesn’t have to be you. You have the power to protect your real estate portfolio right now. When things are good and cash is flowing, we get lazy. We stop paying attention to the details.
Stop doing that. Take a proactive approach. You need to build a fortress around your cash flow so you survive any market dip, rate hike, or vacancy spike.
Here are four clear steps to recession-proof your real estate portfolio.
1. Build a 3-Month Fortress
Do this immediately: Save a minimum of three months of rent per unit.
Vacancy rates are climbing in many markets. Developers are building massive apartment buildings, and immigration numbers are shifting. This creates a surplus of units. I’ve seen large developers offer three months of free rent just to get bodies into their buildings because their vacancy rates are bleeding them dry.
You need a buffer. If your property sits empty for two months, you still have to pay the mortgage, the taxes, and the insurance. If you are barely breaking even on your properties, a single vacancy will crush you.
Set up a separate bank account. Funnel a portion of your cash flow into it every single month until you hit that three-month target. Protect your downside.
2. Stretch Your Amortization
Here’s what works when rates rise: Refinance and extend your amortization.
Let’s say you have a mortgage at 2% with 20 years left on your amortization. When you renew at 4.5%, your monthly payment will jump. That sticker shock hurts.
Instead, review your portfolio today. Refinance that property and stretch the amortization out to 30 years. Yes, you pay a penalty to break your current mortgage. But look at the math.
I recently looked at a portfolio where extending the amortization by 10 years improved the investor’s cash flow by $700 a month on a single property. That $700 is your lifeline.
Think of the 30-year amortization as your minimum payment. When money is tight, you pay the minimum and keep your cash flow strong. When the market booms and your rents increase, you increase your payments and pay down the principal faster. You are in control.
Extending your amortization to 30 years freed up $700 a month for one investor I looked at — book a free strategy call with LendCity and we’ll run the same numbers on your portfolio to show you exactly what refinancing could do for your cash flow.
3. Never Settle on Tenants
Desperation breeds bad decisions. When you lack a reserve fund, you panic when a tenant moves out. You accept the first person who walks through the door and flashes a wad of cash.
Don’t do that.
A bad tenant will destroy your property and your profit margins. They stop paying rent. They trash the unit. They cost you thousands in legal fees and repairs.
This is exactly why you need that three-month reserve fund. Cash in the bank buys you patience. It allows you to say “no” to unqualified applicants.
Screen aggressively. Check their credit. Call their previous landlords. Verify their income. Wait for the right tenant. A vacant unit costs you a little bit of money; a bad tenant costs you everything.
4. Make Your Money on the Buy
When the media screams about a recession, amateur investors run for the hills. Professional investors go shopping.
Right now, competition is low. Bidding wars are dead. You are in a buyer’s market.
Robert Kiyosaki taught me a vital lesson years ago: You make your money when you buy, not when you sell.
In a hot seller’s market, you overpay. You waive inspections. You accept terrible terms just to get the deal. In a buyer’s market, you dictate the terms.
Look for properties that have been sitting on the market for 60 to 90 days. The sellers are tired. They need to sell. Maybe their agent priced it wrong. Maybe the listing photos are terrible. Find the pain point and make an offer that guarantees strong cash flow from day one.
Investors are shifting their focus right now. They are targeting multifamily properties in Canada and crossing the border to buy in the US. Follow the smart money. Find the deals that others ignore.
Take action today. Review your portfolio, stretch your amortizations, build your reserves, and get ready to buy when everyone else is selling.
You’re staring at a buyer’s market with motivated sellers and 60-to-90-day stale listings — schedule a free strategy session with us and we’ll make sure your financing is locked and ready so you can move fast when the right deal shows up.
Frequently Asked Questions
How much cash reserves do I need for rental properties?
Should I extend my mortgage amortization to 30 years?
Won't a 30-year amortization cost me more in interest?
How do I find real estate deals in a buyer's market?
Why are vacancy rates rising in certain real estate markets?
Should I accept a lower-quality tenant just to fill a vacant unit?
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Consult a licensed mortgage professional before making any financing decisions.
Written by
LendCity
Published
February 24, 2026
Reading time
5 min read
Amortization
The period over which a mortgage is scheduled to be fully paid off through regular payments of principal and interest. In Canada, common amortization periods are 25 or 30 years, though the mortgage term (when you renegotiate) is typically 1-5 years.
Reserve Fund
Money set aside by a condo corporation or property owner for future major repairs and capital expenditures like roof replacement, building envelope repairs, or mechanical system upgrades. A well-funded reserve indicates responsible financial management and reduces the risk of special assessments.
Cash Flow
The money left over after collecting rent and paying all expenses including mortgage, taxes, insurance, maintenance, and property management.
Tenant Screening
The process of evaluating prospective tenants through credit checks, employment verification, rental history reviews, and reference checks. Thorough screening is the most effective way landlords can prevent costly problem tenancies and reduce turnover.
Buyer's Market
A buyer's market occurs when the
Multifamily
Properties with multiple dwelling units, from duplexes to large apartment buildings. Often offer better cash flow and economies of scale.
Refinancing
Refinancing is the process of
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