Should I analyze this property at 75% occupancy?

[Jake Graham]

Hey Everyone!

I'm looking at house hacking a 4-plex. I'm going to live in one unit and rent out the other 3 with my VA Loan. Should I analyze the property at 75% or 100% occupancy due to me living in one unit? If 75%, what's a good rule of thumb for cash flow?

Thanks!

[Omar Khan]

@Jake Graham You should look into the lending details. I would analyze it at 75% occupancy as you will invariably have some vacancy during the course of the year. Alternatively, depending on your market conditions you could also assume that each unit would be vacant for X amount of months per year.

E.g. each unit would be vacant 2 months of the year i.e. 2 * 4 = 8 months which is 16.67% vacancy (8 months / (12 months per year * # of units)). 16.67% is a high # but this is just to give you an idea.