A macro model likely won't have the granularity to decrease variable costs when vacancies occur.

Some are holding off on buying because they feel they will be caught by increasing inventory and decreasing prices.

Since Feb of this year, occupancy has steadily decreased and currently is the lowest it's been in the past 2 year rent rolls that I've seen.

As your portfolio grows, your need for the reserve decreases because the current cash flow will take care of almost every contingency.

Although, this particular unit has only 1 bath, you decrease the rental price by approx $100-$200 (roughly speaking as it depends on the location/town/city/state) and that'll do it.

If someone did this deal with cash, potential profit could increase to $51k, however their ROI would decrease to 11%.The $ return on this deal is too low if I was to finance it and the ROI is too low if I was to do cash, so I would pass.Other investors do the work themselves or need to keep their crews busy so they might be able to do better with the rehab numbers or might not mind the return.

The water flow in the house also needs an estimate these estimates will give you more leverage to decrease that price even more.

The slight advantage is when the county assessor send you next year taxes, you can appeal it using the sale price to show the decrease in value due to condition.

Watching the trends and relying on two excellent realtors in our area, will allow us to gain an edge on the markets.CriteriaPurchase price must follow the 70% rule or lowerRehab amount will be dependent on ARV and 70% ruleTimeframe will initially follow 90-120 day holding - we hope to decrease this greatly as we become more reliant on excellent contractors and team membersARV should fall within starter home price or roughly $100K to $160K3 to 5 bedroom1 to 3 bathroomLow crime rate and good to great neighborhoods with older owners or family ownersHow to find deals, marketing plan – We will rely on the MLS, two excellent realtors, networking with local wholesalers at the REIA meeting, and driving for dollars.

If their fee is tied to rent collected, then it will, which will decrease your projected ROI.3) You have 3 tenants that want one now, what happens when you only have 2 in the future?