Phase #1 - Recovery  - characterized by high vacancy rates and no new construction- rent, during this phase, is flat or declining- owners offer rent concessions to avoid their property occupancy rate from  decliningPhase #2 - Expansions- characterized by declining vacancy and the start of new construction- occupancy improves, concessions are not being offered, and rental rates being to growPhase #3 - Hyper Supply - characterized by new construction and vacancy rates beginning to rise - rental rates begin to grow at a slow rate- rent concession are being offerred due to the new construction in the area [in the hope of retaining current renters]Phase #4 - Recession - characterized by the completion of construction and a decline in occupancy rates - concessions are abundant to avoid high move-out rates Here are some foundational truths about optimizing your investments:#1 sow seeds of success in the down times - "The season of failure is the best time for sowing seeds of success."

Also you spread out your risk over multiple units, so if you get a vacancy, you still have money coming in (vs a SFR - no tenant = no money). 

I factor in 5% vacancy, 5 % cap ex, and maybe $1600 lawncare and maintenance for all 4 properties.  

But hearing your expertise is super helpful  as it's relevant to us here as we start our investment journey into MTRs.Have you had your place 90% rented most of the year, or have you experienced blips in vacancies?   

. - I've had multiple vacancies, including one where the tenant left after a year and cost me $6k in turn costs.

That way if you have vacancy in one unit, you still have the other that can at least cover some or all of your expenses. 

Ensure the STR’s projected income comfortably covers new debt, even with conservative occupancy rates, and maintain reserves for market changes or vacancies.

If I could, pick your brain a bit more, how much do you typically set aside for things like CapEx/Vacancy?

People have WAY overstated "cash flow" on BP by ignoring the costs of capex, vacancy and turnovers.My goals in every transaction now are to (1) buy in good neighborhoods, and (2) minimize my outlay of cash. 

Another trick is know how to run vacancy rate by area.