The next decision point involves "timing" how to do the upgrade, do you get the "fixed" part done and then do the "variable" part when vacancies occur?

$8 Total Units 207 Building S.F. 64,219 No. of Buildings 23 Land Acres 7.85 Loan Description: Estimated Annualized Operating Data Actual Pro Forma Scheduled Income $1,507,923 $1,547,923 Other Income $11,368 $11,368 Less Vacancy Gross Operating Income $1,519,291 $1,559,291 Less Expenses $518,179 $472,297 Net Operating Income $1,001,112 $1,086,994 Less Loan Payment Pre-Tax Cash Flow $1,001,112 $1,086,994 Cash on Cash Return 9.67 % 10.50 % Scheduled Gross Income Unit Est.

Ok, here it is:My offer is 173k with 13K back at closing.Total Purchase Price $173,000Seller Concession $13,000 (roof repairs and closing costs/fees)Downpayment (15%) $25950Debt Service: $1330 per month Finance $147,000 x 9%= $1330Gross Rents: $2775 $400 (15% vacancy/rent loss)Effective Rent: $2370 Expenses $1100 (water, insurance, taxes, trash, grounds, misc.)Do I buy or pass?

What is a usual vacancy time everyone has experienced from the time a place goes on the market to rent and the time it is occupied?

Wanted to pose a quick question and see what everyone here thinks, and if anyone has expirance with something of this topic.In my area, the rental market seems to be pretty good, area-wide vacancy rate is around 6%.

20 Unit Brick Apartment, Pitched Roof (new x 5 years) Separate metered utilities (owner pays none)All electric central air/heatNo Vacancy, waiting list to get inDebt service: Asking 750,000 Get for 680,000680,000 at 10% down 7.75% 30yearYear:2007Scheduled Gross Income:$125,400 Vacancy: $3,000 (never know) Effective Gross Income:$122,400 Maintenance: $8,000 Taxes: $2,809 Insurance: $8,000 Management/Grounds/Misc: $18,502 Total Expenses: $37,311 Net Operating Income: $85,099 Debt Service: $53,573 Pre-Tax Cash Flow: $31,526Monthly Per Unit Cash Flow: $138.202 bed 1 bathNo.

Of course when it rains it pours, his property management company he used for the last few years ran into hard times and as a result poorly managed his properties leading to high vacancy rates high repair costs etc.

I'm aware you need to factor in vacancies, maintenance, etc. but I'm suprissed to hear 50%.I thought the general rule was a rental property should produce at least .8% gross rental income.

That's takes vacancy rate risk into consideration.

I also bet on the location of the house and the area with very low vacancy factor.In conclusion, I pay only attorneys fees to structure the deal.