Originally posted by @Bridget Campbell:View report*This link comes directly from our calculators, based on information input by the member who posted.The Acquisition portion of the deal will have a vacancy of 100% due to the rehab I assume.

I'm trying to keep this simple so in the example I'm not factoring in the filing fees, court costs, attorney fees, the unit turn (tenants being evicted typically don't clean and paint on their way out :) ), vacancy, marketing, and leasing fees that also come with an eviction.

I’d rather have a vacancy any day than a risky tenant.

For example, just use 5-7% for vacancy rather than taking one analysis where you have 0% vacancy and another for 10% vacancy.

While each property is going to be different, you should set aside a percentage of your gross income on the property for vacancy, capital expenditures and maintenance.

Numbers: 
PP: $579,000RENT: $7500 ($3750 per unit)Op EX: $3190  tax and insurance: $1200  CAD: $600  property mgmt: $640  vacancy: $750NOI: $7500-$3190 = $4310Cash Flow: $4310 NOI - $2960 mortgage = $1350 cash flowCash on Cash return: 14.08%

Unfortunately, we've worked with 5 different property managers in the 6-7 years we've held these properties and every time we have a vacancy, our tab for cleaning and preparing has been overpriced.

Cash flow requirements for me have gone up to take into account potential rent decreases and vacancy increases (short term) and I am no longer looking for anything that needs significant rehab or a refi.

Vacancy, repairs, pest, and CapEx?

You can use First American’s website as a resource for closing cost estimates: https://facc.firstam.com I’d budget 8% vacancy instead of 5% so you have a full month of vacancy budgeted in your numbers.