For 2016, these were the top 10 real estate markets to watch.https://www.trulia.com/blog/10-hot-real-estate-markets-to-watch-in-2016/They looked at five metrics: strong job growth over the past year, low vacancy rates, high affordability, more inbound home searches than outbound, and a large share of millennials.

Taking property tax, insurance, vacancy, CapEx and maintenance, and other expenses into account let's assume I achieve a cash flow of around $200.  

Hello BP community,I'm interested to learn what most investors do with the portion of rental income commonly set aside for cap ex, repair, and vacancy costs.

We have planned for a 50% vacancy in our vacation rental here, which seems to be very conservative, as we live within 30 mins of major ski areas and in the summer these mountains are filled with vacationers from NY, MA, CT and RI.  

With 100% occupancy and market rent, he believes gross would be around 45k (40k with vacancy) with 16-18k in expenses, netting 22-24k a year.

The rent is capped at 400 a month, but as tenants leave I can get 650 with hud per house. in 2019 I can raise all rents regardless, but won't do it all at once so as not to spike vacancy too high at one time.

Not only it increases costs and cuts from your margin, it's also another cost to carry when you have vacancy.

I think they are estimating a sell price of 1.2mm...I have not run any numbers though the calc tool because I don't know enough about cap rates, vacancy, etc.  

I am assuming expenses are $2742 (tax, insurance, vacancies, property managements, cap and repair costs) .  

Because of the local pipeline company in this town the vacancy rates are very low.