Vacancy of 5% is your tenant staying for 20 months.

I bought in the recession, have very little debt and still things are reasonably tight when taking into account mgmt fees (I self manage) and reserves for vacancy, repairs, and capex.In general I see two camps. 

Ourial estate market was hot before this and vacancies were low.

@kristopher shobe I am looking at getting in to the Pottsville market, how is being an investor there, do you have issues with vacancies and placing tenants?

Vacancies will be harder to fill so if you have a good tenant work with them.

Maybe sub2 would make sense for landlords with long vacancies leading up to now, knowing they may have problems renting for a few months.

You can view all the active listings (search by cap rates, vacancies, GRM's, etc) and toggle to see nearby rent comps and sales comps!  

@Matt Nico, the lender will take the income from the property, subtract a 5% vacancy factor(unless the vacancy in the area is higher according to the appraiser), then subtract the mortgage payment and other expenses such as utilities,  maintenance, etc and come up with a ratio(DSCR).

Better to give some now and not have vacancies. 

Below are the expenses I am carrying:Expenses:Property Taxes: $1,626 annually ($136/month)Insurance: $714 annually ($59/month)Maintenance and Repairs: $900 annually ($75/month)Capital Expenditures: $960 annually ($80/month)Utilities: $0Advertising/Administration: $300 annually ($26/month)Property Management Fee: 10% of gross income = $1,200 annually ($100/month)Tenant Placement Fee: 50% of first month's rent = $538 annually ($45/month)Turn Reserves (Cleaning): $500 annually ($42/month)BreakdownRental Income $1,075 - 7 % vacancy = $1,000/month ($11,997 annually)Expenses = $561/month ($6,737 annually)Expenses/Gross Income = 59 %For the record, when I called the County Assessor's office, they told me the assessed value is $81,300, and I would be paying 2 % as an investor (number is carried above).