The vacancy rate is only one of a large number of operating expenses and many of these expenses are constantly changing due to a number of factors.

All your operating expenses are also deductible.

An LLC is a right choice for Rental Real Estate activities, but not for Rehabbing or a flipping operation such as yours.Joe

You made a very common mistake by ommitting many of the operating expenses.

You can deduct all your actual operating expenses, all the mortgage interest, and the depreciation from your rental receipts.

Throughout the United States, operating expenses run 45% to 50% of gross rents (gross scheduled rents).

at that level of investment, your renters could buy cheaper than you could rent it to them after you factor in your profits and operating expenses....

I operate in a new area and have been shocked by the type of potential tenants I have been encountering to fill my units.

troyce,The 50% "rule" is nothing more than the fact that throughout the United States, operating expenses run 45% to 50% of the gross rents.

Over the years I have found that real estate investing communities are tight knit groups and word gets around quickly amongst investors and agents if someone operates in a less than above board manner (not that you would, I'm just saying).My general rule of thumb is that if someone gives me the lead then I go out of my way to make sure they get paid.