@Malika Boudreaux your vacancy, capex, repairs, and property management are all 2-3%.

ROI will be $17,500 or 16% assuming no vacancy.

You have to account for vacancies.

Currently I advertise vacancies on Zillow; Trulia and Craigslist.

So I'll assume 3000 usable, which would be 3K per month ( minus taxes insurance vacancy) for a 400k investment  

Some companies that we use will allow for a short vacancy on a new rental (but have it in writing from the agent that the company is aware of it and the time frame that the bldg. must be occupied by.

@Erica Pelfrey  Make sure you have enough in reserves for an unexpected repair or vacancy. 

Vacancy might vary some, 1 month vacancy is 8.3%, but that is largely dependent on your location.

@Geren Knight III for what it’s worth, I have yet to purchase a property myself, but I usually put my monthly expense percentages a little higher. 10% for vacancy, repairs and maintenance, and CapEx.

I own properties in the western suburbs of Chicago where my real vacancy has been around 2-3%.