See what it takes to make your property negative cash flow
So I posted this the other day as a answer o someones question and got a vote - so thought others might find this useful as well. When buying a property, for modeling purposes you sometimes wonder how far off you can be before you are negative cash flow. Instead of just a flat percentage discount - I think it's better to model percentage amount less against months of vacancy.
So in the example above, I can be 15% off on my rent amount and have 4 Vacant months of a unit, and still be cash flow positive. But If I'm 20% off and have 4 Vacant months of a unit - then I'm going to have a negative cash flow.