Vacancy is often around 5%, particularly in high-demand markets, though this can vary by location.

So as long as your insurance, property taxes, property management, utilities maintenance, repairs, vacancy, and capex come to $4/mo or less you’ll be fine.

The property cash flows at a 15% ROI…………………..before insurance, debt service, utilities, management, vacancies, repairs, maintenance, payroll and property taxes7.

What are your average vacancy rates between the two, if you don't mind me asking?

I ran my own proforma and used an 8% vacancy rate and a 35% operating expense margin, which are the %s that most banks my clients work with use to underwrite their DSCR loans.

I'm interested in learning a bit more about typical vacancy percentages, size of the local population being serviced, reasonable percentage of effective gross income for expenses, etc. as well Peter.Hopefully some experienced member(s) will sound off!

And, that this return to office will manifest itself first in suburban areas with relatively less competition and shorter commutes for local workers, and that re-absorption of inventory will take a lot of time in urban areas with tons of vacancies.

If that's $25,000 a year, then two years of vacancy is about the same as a really, really bad renter.

This cuts down on showings and may lead to longer vacancies - which costs an investor money.

They don't build a proper reserve, failing to account for turnover costs, vacancies, capex, etc.