They have to have reserves for vacancies.

Banking an 11% vacancy since there are only 2 doors.

I had 2 properties come up for vacancy recently and posted them on Zillow.

It’s also worth asking the seller for more details on the tenants’ payment history and lease terms.If you’re new to this market, local property managers or real estate agents can give insights on vacancy rates and tenant turnover.

Sometimes I get on the phone with people and they tell me they factor: 10% vacancy, 10% maintenance, 10% cap ex, 10% management.

This is just a general spreadsheet for calculating capex, regular expenses, vacancy, etc.

Low vacancy rate2.

.- Investors are less worried about vacancies, focusing on financing costs (35%) and home prices (33%).- 22% faced rental insurance hikes of 11% or more, and 50% saw property tax increases of over 6%.- Conventional loans remain the top financing option (44%).Give it a full read on our BiggerPockets Blog

Despite rising interest from young families and institutional investors, the number of new SFR and BTR units is expected to decline sharply, from 34,000 in 2024 to just 9,500 in 2025, a 73% decrease.While demand remains, rent growth in this segment has turned negative, falling by 0.8% in Q2 2024 due to higher vacancies in 2023.

As someone in the greater Orlando market the cashflow numbers work the closer to the hood you are but I've been noticing a much higher vacancy rate at "market" rents.