Guys, vacancy... Its brutal to the profit margin.
I am getting ready to acquire a property, after doing the math, lets say the NOI is 3500. Carrying cost monthly is 980, this is after a cash-out refi. How do others deal with this issue. 4 months empty can put you in the negative.
Price the property right. I learned that on my first property. An extra $200 a month sounds great when advertising, but added an extra ~2 months to my first rental. A more competitive price should have it rented in the first week or two its listed.
YUP list it for under market cream the rental pool and keep it rented.
how I do this Is I NEVER raised rent as long as tenant paid.. I had one move out last month after 10 years..
but now its been vacant 2 weeks I need to rehab etc probably be December if I am lucky before its rented.. by by 3k in payments and 5k in rehab.. but this is a ten year tenancy..
turn over KILLS landlords
Buy a property where people want to live
Make the property as attractive or tad bit more attractive than the competition
Manage your contractors and hold them accountable to time (and money)
Advertise like crazy
Get what is fair but don't get greedy
Screen efficiently and effectively as soon as possible
Don't let speed of filling a vacancy override quality of filling a vacancy
Keep that tenant for a minimum of ~2 years (hopefully long term)
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