Vacancy Rate & Cap Rate Calculation

[Rafael S.]

How many months rent do you guys deduct from gross rental income when determining your cap rate? In other words what is your vacancy rate?

I am currently deducting two months rent for 1980s, 3/2 townhomes, in a middle class area with great schools. Is that too much?

My thinking is if you used a realtor to find a tenant they would take one month. And if it took one month to find and collect rent, you'd be out another month.