Vacancy on long term rentals or house hacks

[Vashist D.]

I’m confused about how if it is so easy to pay a low mortgage and finance a home, why would people want to rent? Brandon turner in his podcast claims that vacancy rates are usually 5% but, I don’t understand how people would choose to rent your single family or multi family instead of apartment buildings or traditional rental buildings. With the modern world of the internet most educated people know getting a mortgage and buying a home instead of renting is better, so why would people want to rent my investment and lose money? I’m able to find these good deals while browsing but I don’t know why someone wouldn’t just buy a property themselves instead of renting? And if you guys know if vacancy rates on average properties are really that low. Especially with multi family house hacks, which I plan on implementing in my early 20s why would people choose to rent a multi family instead of new constructed apartment buildings? Thank you anyone who can explain to me if vecancy are not a problem to worry about.

[Amber Arwine]

In what I see on a day to day basis, even 3.5% is very hard for most people to save up, which is what is needed to buy a home. Early mismanagement of credit can be an issue as well. I have people that want to buy homes, but just don't have the credit score or down payment to do so, even if they have a good income.

If you are in a position where you do have the down payment, I would go for it!

I agree though that individuals (versus corporations) buying 2-4 unit properties and renting out the other units at a reasonable rate is truly the best solution for housing affordability for both them and the community.

A realtor can better advise on exact vacancy rates, but from what I've seen, it's not a huge concern.