We want proof of financials to to mostly see vacancy rates they've experienced to compare the utilities (all utilities are included in rent and paid by owner) and make sure our numbers are close because 2 of the units are rather small and are high priced for the area (again, based on their current rental price claims).

C and D equals trouble; low rents; crime; vandalism; vacancy; AC units being stolen; copper being stripped, evictions; increased repairs; difficult to resell and ongoing bad news.

Vacancy of 3% is 1 month vacant out of 33 1/3 months, unlikely.

If you choose to pursue this, I think you need to factor in evictions into your numbers and a higher vacancy rate. 

We'll see if that goes anywhere.My back up plan is the same as my primary plan: keep buying property in markets that have a diverse economic base, in an underserved market (i.e. upper end of low income/bottom end of middle income rentals, small commercial properties), for around 70%-80% of what I could sell it for today, and using the 2% rule of rent to purchase price ratio to ensure there is plenty of cash flow where I can handle vacancies, maintenance, capital expenditures, and still cash flow positive.Cars crash far more often than markets, but you still drive, right?

Are you also accounting anything for vacancies? 

I know my taxes, insurance, mgt payment, and other items like maintenance, cap x and vacancy.

@John Teachout, yes that includes setting aside for cap-ex, maintenance, and vacancies.

50% rule for the most part is designed to be taxes, insurance, maintenance, management, capex, vacancy, etc. 

When I looked at Airbnb I found that all the rentals of similar status had 90+% vacancy for the next 3 months.