VACANCY QUESTION!

[Tyler Piciullo]

IM READING A BOOK HELP!

GROSS RENTAL INCOME: $1,000

VACANCY: $60

WHY WOULD VACANCY ONLY BE $60 ON A SINGLE FAMILY HOME? WOULDN'T IT BE MUCH MORE BECAUSE YOU ARE NOT RECEIVING ANY RENT?

[Steve Rozenberg]

I think the vacancy number is very over analyzed and over thougth of... True investors hold properties for many many years.. And when going into a market unless you are an expert on the property and market that is going to be a tough thing to guess. For example a college town may have one type of vacancy rate, a lower income area another, and say a military town yet another. So I would just pick a conservative number and go from there. Then you test and measure and over time you can fine tune your numbers