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Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: DB43 on July 19, 2016, 08:35:54 PM

Title: What Vacancy Rate for Potential Rental Purchase?
Post by: DB43 on July 19, 2016, 08:35:54 PM

Hey all just a quick question.

When evaluating purchasing a rental house what numbers are folks using for vacancy rates?

For the properties I have been looking at I have been using the local vacancy rate (per google resources) and doubling it in my calculations to see if the deal works for me. Is this conservative enough? Too conservative?

Has anyone found a consistently accurate and trustworthy source of current vacancy rates?

Title: Re: What Vacancy Rate for Potential Rental Purchase?
Post by: SwordGuy on July 19, 2016, 09:51:23 PM

First of all, every property is unique, and therefore no generic source can be definitive.

I'm using 6% until I learn better by experience.

Title: Re: What Vacancy Rate for Potential Rental Purchase?
Post by: Jschange on July 19, 2016, 09:55:35 PM

Afford anything has some sample rates, and also publishes their real income and costs.

Title: Re: What Vacancy Rate for Potential Rental Purchase?
Post by: Drifterrider on July 20, 2016, 08:09:59 AM

Quote from: DB43 on July 19, 2016, 08:35:54 PM

Hey all just a quick question. Has anyone found a consistently accurate and trustworthy source of current vacancy rates?

My property management firm.  I would suggest you interviewing several even if you don't plan to use one.  They may know a lot you wouldn't think of.  When I look at a potential listing, I ask my PM about the area, turnover rate (there is rarely a vacancy on a decent SFR), etc.