Wheatie often says that the operating expenses can be OVER 50% and this property is a prime candidate for that.

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.

There's also lots of material here in various posts, though it may make more sense if you take the time to buy or borrow a book on "pre foreclosure investing" that presents everything in an organized manner.

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.