I think if you need the cash flow right away, then go with the best of the worst.However, if you can financially support the vacancies, then I agree with others in that you are better off leaving it vacant and hope to find someone you are comfortable renting out to as opposed to someone who will give you problems all the time.

PMI significantly eats into cash flow.Two final cautions - You may be underestimating startup and closing costs, and I see no mention of vacancy.

First off, hats off to Brandon and Josh for creating this amazing resource.I've always been interested in real estate but never committed to learning and setting my goals until this year.I'm currently located in the Boston area, and am looking into properties that are in towns an hour or two away as my target geography.My short term goal in the next year or so is to acquire a multifamily property in a region with low vacancy.

If financed it is a negative cash flow deal once you factor in mortgage , taxes , hoa, repairs, vacancies and suchIt really provides zero equity if you factor in closing costs on the buy and sell side

they are asking for $55k.im interested in conventional loan which requires at least 20% down on rental property (=$11k) and i calculated vacancy rate of 10% (=$960 based off of $9,600 gross rent), as far as i know there is no repair needed, but i'll factor in 15% (=$1440), what type of monthly expenses should i factor in?

they are asking for $55k.im interested in conventional loan which requires at least 20% down on rental property (=$11k) and i calculated vacancy rate of 10% (=$960 based off of $9,600 gross rent), as far as i know there is no repair needed, but i'll factor in 15% (=$1440), what type of monthly expenses should i factor in?

(NOTE: It was stated as previously a SFH, so would probably have to be re-converted to a duplex).I estimated monthly expenses (including 10% vacancy/capex/repairs as well as PITI) around $1500 or so.Potential income (if both rented) could be around $1800-2000, of course half of that if we lived in one unit.Okay, what are your thoughts?  

The type of tenants that would live in those areas tend to be worse - (don't pay in full and on time, don't take care of the place, etc.) which results in more turnover and higher vacancy rates. 

A vacancy is a blessing compared to a bad tenant is a mantra you should learn and live.

Maybe that got that from me as investor, vacancies make my skin crawl!