Vacancy in my area is about 8%.

.- For vacancy, I would use 5% if it's a multifamily (2-4 unit) property or 10% if it's a one unit property. 

I think if you underwrite a little higher vacancy cost and maybe a little more difficult to re-sell as most people prefer more of a mix. 

Asking Price: $215,000Offer: $139,750Purchase Loan Amount: $125,775Rehab: $10,000 (or less)ARV: $215,000Potential Rent: $1,349Monthly Management: $108Monthly Taxes: $330Monthly Repairs, Maintenance, Vacancy, Cap Ex: $188The monthly mortgage is estimated to be $1,069 for 12 Months at 9.45%.  

As seen in the report, I am charging utility outside of water and garbage to the tenants and about a 7% average for vacancy, maintenance and cap X with a 25 allocation each month as extra.

Hi @Josh Corby, along with the mortgage payment, there are usually vacancy rate, property taxes, insurance, your share of utilities, capital expenses, maintenance, and property management fees to consider.

Getting quotes for refinishing may not hurt, but keep in mind the time it takes for them to be done and cure, and consider that added vacancy time every time they need to be redone.

That means need to calculate what monthly rental numbers look like and subtract out the subject 2 payment, insurance, maintenance, vacancy, and YOUR cash flow.

We typically set aside 15% of the rent for vacancies and maintenance.

For example a vacancy percentage, future repairs and Capex.Now I understand the importance of having these items in the budget, however let's say hypothetically we never have a vacancy.