Vacancy rate for out of state investing 30%?

Question

Samuel Glantz · Answer

15% to 30% ????? RUN. plenty of markets offering less than 8%.

Anthony Wick · Answer

I guess it depends on the size of the property you're buying (number of units). But, if anybody told me even 15% vacancy is the norm, why would I want to buy there? It better be a heck of a deal, with the other 85% occupied making up the difference. But 30%? And, presuming you're using a property manager, why would the occupancy rate change just because you don't live there?

Albert L. · Answer

good answers here. with any market, it depends. from what we've seen so far in cleveland we expect at least 30 days min to have a property be rent ready, market and move in. 9% has been a conservative estimate that we've used

Jay Hinrichs · Answer

they may be confusing vacancy with the ability to collect rent on an annual basis.. if your looking at rough areas D class 9 months of rent a year would be average.

Alice K. · Answer

Yeah, 30% seems high.

Being out of state should not impact a vacancy rate that much...
If the realtor says that, he could be overcharging or the property manager may need to step up their a-game.

You could also ask them where the hot locations with the lowest vacancies in the area are.

Could be an overcrowded market too. Like what @Anthony Wick said, if it's too many rentals, forget it xD (Unless you know the area super well / are buying because you have some special boots on the ground.)

Vacancy rate for out of state investing 30%?

Vacancy rate for out of state investing 30%?

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