Is 10% vacancy average for your area?

Make sure you have enough reserves to cover your vacancies and maintenance.

Purchase: $250,000 Cash to close: $48,750 (15% down at 5%, owner financing) Monthly Rent (one commercial space, one residential home, one studio-sized residence, 1 garage): $5000 Monthly: Tax: 1666 Insurance: 250 Vacancy (10%): 500 Repairs (5%): 250 TOTAL: $2666 NOI (5000-2666): 2334 Mortgage: 1141 Total Cashflow: $1193 CAP rate: 5.7% Cash on Cash: 29% I can also put my own business in the commercial space for $2500 of that $5000, which would raise the occupancy rate slightly.

Free first month is one of the biggest indicators of problems in that geographic market.In summary the turnkey business model hinges on issues that are not talked about by the vendors or even the buyers: CAPEX, vacancy, fixup to re-rent.

Here you are permitted to request vacancy at Close if you plan to make it your primary residence or move a member of your "immediate" family into the property.When the property is requested vacant, a Notice to Vacate is filed with the Rentalsman and served on the tenant giving them effectively 30 - 90 days to vacate (depending on the lease and whether they are a "long term tenant").

the theme you should remember for screening tenants to fill a vacancy is "haste makes waste!"

I do know rates are higher in Colorado right now though.Also have you factored, vacancies, property management, depreciation, etc into your numbers?

Conversely, when vacancies occur in the residential apartments above, the store at the street level is thriving and revenues can offset a loss in rental revenues.

New roofs, paint, carpet, counters, cabinets, etcRent: $40,800 yearly ($3400/month)Expenses and Vacancy: $20,000 (using information from seller)Mortgage Payment: $9,224Pretax Cash Flow: $11,576Cash ROI: 16%Cash/Door/Month: $188Any comments would be appreciated!

Similar to rents you'll find some conservative lenders that want to underwrite using market vacancy, however you can argue for less when you show actuals.