"Hard" Down Units - What Does It Mean?

[Danielle Fattizzi]

Hello my very helpful friends!

I will try to keep this simple and short. 

Analyzed and sent an LOI on a 32 unit Class C property in Jacksonville, FL. Was in the middle of negotiations on the price (have not moved to purchase agreement yet) when I received an updated rent roll from the broker. It appears 6 units have been vacant for some or all of the last 12 months. I inquired with the broker in regards to the nature of the vacancy of these units and he replied that they are "hard" down units.

I have a general idea of what that term means but I am hoping some of you can shed more light on the extent of what I could be looking at here. Any help is much appreciated.