Vacancy and credit loss estimates for analysis

[Nate Ginsberg]

Hi BP community! I am an investor in Leominster, Massachusetts - which is central Mass for those outside the area - focused on value add deals for small residential multifamily properties with 2+ bedrooms per unit. There are tons of older (ie built ~1900 or earlier) buildings in the area in need of minor updates to be rentable at or very near market value. We like to aim for the middle of the market, and median annual income here is about $57k. My question is what are people in nearby in MA/NH/ME using to estimate vacancy and credit loss when analyzing/underwriting deals? There’s very little supply right now, but I can’t believe that will last forever...