Finding a market for rentals

[David Charles Perez]

What is a good way to find out if the property you want to purchase is in a good market for rentals? Does anyone ever experience crazy high vacancies or is it generally not a huge problem even for first time investors?

[John Warren]

@David Charles Perez you should check with local multifamily brokers to find out what the going vacancy rate is. I keep up on these sorts of things, and know the local stats for my Chicago sub market by the quarter. To answer your question about vacancy, a lot of things help drive the vacancy factor. Is your property in a large metro area? Is your property in a desirable area? Does your property look attractive? Are there currently tenants, and if so, what are their back grounds like? 

In my part of the world, real vacancy is still hovering right around 5%. If I project any lower than that, I am doing myself a disservice.