Expense data for low income vs. high end rentals
Does anybody have any hard data they have compiled for expenses/vacancy/management of low-income vs. higher end rentals? I know the rule of thumb around here is 50%, but it seems that low-income is probably higher and higher end stuff could be less.
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Ive pitched exactly what your hypothesizing. Lower income properties are going to have higher expense ratios and higher vacancy rates than the converse. However, I believe that there is another input that you should consider, which is location demand. Some areas are abundant with inventory and lack demand. If too many people are feeling the same way and buy into the higher end rental unit game...as is the case during a post-bust economy, then your vacancy rate may be higher at that price point.
I have more demand at certain price points than I do at others, and this changes.
All the best.