Vacancy and your bottom line

[Account Closed]

Many take the time to analyze a deal before purchasing, but I actually find few out there that really understand the factors that effect their real estate business.

Not sure if many here would feel it is worthwhile, but it is possible to determine your break even vacancy level as well as your margin of safety. Some rental markets are more volatile than others, some expenses may increase unexpectedly, you may decide to change the way you manage a building all of these can change your cash flow.

Break even also allows you to understand at what level a property must perform in order to achieve a certain level of profit.

I throw this out because it something that can be modeled and potentially be made available to members that might be interested. Any comments, thoughts, hey yous :D