Updated over 7 years ago on . Most recent reply
Vacancy Expense
If you own a property free & clear or when calculating for a cash purchase, do you still calculate a vacancy expense when determining cash flow? Why or why not?
Cheers.
Most Popular Reply
You do include it. The only things you don't include are items specific to financing - essentially, Principal and Interest.
The vacancy is a reduction of Rental Income due to a place being vacant and has nothing to do with a house being financed vs paid off or purchased for cash.