-High demand for housing allows for lower vacancy rates. 

I moved back into...I'm considering cash out refinancing the property to tap 150K equity on a house I put 11K down for...My cash flow is 1K a month after all expenses and budgeting for vacancy, capex, etc.

I moved back into...I'm considering cash out refinancing the property to tap 150K equity on a house I put 11K down for almost 8 years ago...My cash flow is 1K a month after all expenses and budgeting for vacancy, capex, etc.

Mortgage lender is giving me full 200k at 4.25%, 15 yr mortgage.Property to purchase after mortgage and full operating expense including vacancy rate3%, maintenance, capital exp, positive cash flow $600 month.Higher mortgage now, less money in pocket vs lower mortgage, little extra pocket money and some equity to start.Question: How do people feel about collateral vs down payments?

Think of it this way:If stabilized operations presume 5% physical vacancy, then if you could squeeze 2x the income from 5% of the units in the community, you could effectively "erase" the entire 5% vacancy.This is the second unit we furnished at Canyon 35.

Additionally, once stabilized, the building should be cash-flowing at about $1,300 per month after all operating expenses (maintenance budget, vacancy budget, snow removal, property management, and PITI).

Also, 4% vacancy is about 2 weeks a year.

I am interested in the rent by room strategy but have concerns about vacancy if I were to take that route.

Because right now you won't see cashflow from this after Capex, maintenance, vacancy, etc. 2.)

The details:List: $150,000Down Payment: $30,000/ 20%Closing Costs: $4,500/3% Initial Investment: $34,500No of Units: 2 (Both Currently Occupied)Annual Rent: $20,100ExpensesProperty Taxes: $447.58 mo/ $5,371 yearHomeowners Ins: $59 mo/ $708 yearCapEx: $168/10%Vacancy: $168/10%Total: $842.58Net: $1,675 mo Total Cost (Mortgage plus Op Ex) $1,477.58Cash Flow: $197.42mo/ $2,369.04 YearCoCRoi: $2,369.04/$34,000= 7% That’s what I have for evaluating a property with what I know.