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Updated over 10 years ago,
Vacancy rate and Repairs?
Hi,
I am looking to get into investing in a Duplex for my first investment property. I know that a duplex is more likely to have more frequent turnovers, and the subsequent leasing fee of 1 months rent (I have decided to use a PM that charges these fees), and the associated repair fees before a new tenant moves in. How should I account for these in my deal analysis?
I am currently using a 8% vacancy rate (my market has a overall 5% vacancy rate), and a 5% repairs and maintenance rate (I have been using 5% to analyze SFH homes, should this 5% be higher since its a duplex?)
Thanks!