Our firm hopes to make a small dent in this problem by acquiring mobile home parks that have meaningful vacancy and infilling new homes for families that desperately need respectable, clean shelter at a price point they can afford.

expect a fair amount of turn over with smaller units, meaning your vacancy reserve should be higher and plan on spending gas money driving over to see tenants.....showing the property etc.....

Although raising the rent is a risk, if you believe you can easily rent it out for $150-$200 more per month and can afford a vacancy period and turnover costs, it's worth it to raise the rent a little, if not the full amount.

Reserves would be 6 months of expenses minimum plus vacancy (10% minimum).

From a physical vacancy standpoint, an 8.333% vacancy rate implies that all units turn over every year, if the complete turn (old tenant move out to new tenant move in, including cleaning/repair/marketing time) takes 1 month.

I have tried so hard to avoid allowing animals of any kind into my apartments, but in Denver it seems that almost every applicant for my vacancies is a pet owner.

I'm scheduled to look at this 4-plex later today.Asking price is $109,900These figures are based on a purchase price of 90K A little more than 20% disconut price22500 25% downLoan rate 5% 30 yrsMontly rental minus 10% vacancy $2070Home owners 700 yrtaxes 6300 yrmonthly expenses $620 not including PMRENTAL INCOME 24840 YRTotal expenses 18784Total loan payments 4344Cash flow $6056Intrest expense $ 3375Depreciation $2945Total tax deduction $4080Tax saved -612Net after tax cash flow $5444 or $453This is from an on-line Investment Property Calculator.I kept it as short as I could.These figures are at 15% discounted pricePurchase Price $93415Down payment $23,353Loan rate 5%Term 30yrsMonthly rental less 10% $2070Home owners 700 yrTaxes $6300 yrMonthly expenses $620 NO PMRental Income 24840Total Expenses 18952Cash Flow $ 5888Intrest Expense $ 3503Depreciation $3057Ins, tax, other expenses $14440Total tax deduction $-3840Tax saved $-576After Tax cash flow $5312 or $442/mo.Taxes are high in NYS.There is a misc expense that is included in the figures at $ 4739 per/yr.

If let's say expenses is 45% of GOI (including 5% to cover reserves & vacancy) this will give you $26,400 NOI ($2,200/month) If you pick it up for 10% CAP, your purchase price is $264k.If you borrow 20% from a private lender ($52,800) and pay 10% interest/yr that would be $5,280 or $440/month (interest only payments)The mortgage on $211,200@5% interest 30 yr. is $1,134.

I've factored in 10% vacancy, 5% for repairs & maintenance and 5% for reserves in addition to taxes, insurance and management.

When we discuss real estate, we both like the same neighberhood that is wildly popular, low low vacancy rate (we used to live there, these houses are like hotcakes), but they only have a 12-15% cash on cash return (after mortgage, insurance, taxes, 10% vacancy, 10% maintenance, 10% capex).