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.

Low vacancy = higher profit as you will have less turnover costs.

Vegas is notoriously bad for transient tenants which do a huge number on your vacancies and turnovers, both of which can cost a fortune.

They have No Vacancies.

@Jimmy MoncriefShort Answer:Start at 550k and be willing to pay 650kLonger Answer: I get the same number that you do, but I don't see a management fee, cap ex or vacancy expense in the calculations anywhere.With an 8% management fee and a 6% vacancy expense I see this place losing you about $460/month.I have no idea how much your cap ex costs will be, but I would imagine a place like this probably has a roof that costs 15k or more to replace.

I've been looking at a strip mall in a good location and in petty good condition, but there is high vacancy.

After my third vacancy, I moved into the property, brought my own stereo system down and proceeded to play barney "I love you songs" at 5:30 am, every day for a couple of weeks.