Buy & Hold? Check that vacancy rate.

[Bogdan Cirlig]

I've been mildly shocked to see a lot of for sale posts (not only on BP but other sites) in which the seller presents the numbers that make a deal look sooo good, at least on paper. Things like CAP 25% are frequently thrown into the mix.

However, do your homework AND ensure you can actually keep that property rented, at all. Things to look out for:

• Out of state owner selling :)
• Bad asset class (C, D ?). Drive around the block.
• Crime rate in that neighborhood
• Property in need of rehab (in a high crime area, uhu, most likely looted)
• Vacancy rate (I saw 40% vacancy in Flint, MI and other similar places) 

High vacancy rate is a huge red flag, that means, empty houses, lots of them or worse ghost towns. Be wise and complete due diligence. Don't buy the numbers only, check the reality and assumptions used to make those numbers.