After some small work needed on the outside, the house would cash flow, after property management, property repairs, vacancy loss, mortgage, taxes, and insurance, over $300/month.We are 19% undervalued and will be in good shape here within 3-5years.

Does anyone know the vacancy factors for rental units in and around San Antonio

If you have a vacancy, your still collecting rents from the other units.

I use a percentage for vacancy and for maintenance (normally 10% for each), but if you are referring to PITI (principal, interest, taxes, and insurance) than the rent has nothing to do with it.

Asking price $310,000Bought 285,000 ( 8% less, 310,000 - 285,000 / 310,000 = 0.08% )Bought with 20% down 57,000 ( 285,000 x 20% = 57,000 )Loan 228,000monthly morgt. payment 1516.88 taxes 300.00 monthinsurance, maint, expenses etc.. 700.00 month extra This property will stand me approx 2216.00 each monthThis property will stand me approx 26,592.00 each year6Unitsaverage unit gets 583.33monthly rent income 3500.00 yearly rent roll is 42,00042,000 x 15% vacancy = 6300.00potential yearly income is 35,700.0035,700.00 - 26,592.00 = potential profit is 9108.00cash on cash is 16% ( 9108.00 / 57000.00 = 0.16 )cap rate 3.2 % ( 9108.00 / 285,000 = 3.2 % )

I could find comps that suggest I could go higher, but I want a good choice of tenants, and I don't want vacancies.

The mentor coached them through a transaction that resulted in a negative cash flow of $500/month just based on rental income and debt service never mind vacancy, maintenance etc.

Yes Richard, can you tell me about the vacancy problems there, how to avoid, and your opinion about buying to rent and hold-out of state investor.Thanks.

I didn't have a plan for filling vacancy, nor maintenance, nor management.

So taking the NET rent per unit (before vacancies and repairs), down to $6800.