Vacancies are always a challenge because of this risk.Is this an area where there are problems like this?

Do you take into account vacancy rate when calculating operating expenses?

That does not include vacancy, management, or repairs.With 25% down I've got a loan of $68625 at 4.5% over 30 years.

OTOH, if one of you puts up 100% of the cash and the other one manages the property (screens tenants, deals with issues, etc.) then I'd say the one doing the management should get the PM's fees (typically 10% of collected rent plus half a months rent to fill a vacancy) and the other should get all the cash flow.Partnerships are fraught with problems.

One partially remodeled kitchen and partially remodeled bathroom.)Entire back half of roof was replaced in 2013Interior of house is in good condition.Possible owner financing scenario:Down payment $10,000Amount financed $29,900Monthly payment -- $284.7530 year amortization10 year balloon payment No prepayment penaltyProforma Income and expense statement:Gross rent $9,720 ($460 per month + $350/mo.)Less vacancy 5% -486Net potential rent 9,234Expenses:Taxes 2012 $1,068 (taxes have been appealed.

Sure some moves will happen, but much less than normal as people budget for how to pay for Christmas.I'm in the same boat as you with a vacancy right now, two to be exact.

I had to replace the gas line from meter to house, two toilets, the water heater, and redo some electrical (the electrical and gas line repairs were not a result of the vacancy but improper installation when built).

They also have a 0% vacancy, this allows them to move someone new in within a week.

But they won't look great if there is a higher vacancy rate, more repairs, etc.

(search here for the 50% rule) You have figured nothing in for vacancy, turnover cost, common utilities, and your insurance number looks low to me.What is the current tax assessment will the taxes go up based on your new purchase price?