Vacancy Rate in market pullback

[Mary Stephens]

I am planning to purchase a duplex in Sandy Oregon (near Portland Oregon and Gresham). I will have approx. 7.2 to 7.8% ROI and is in good condition. This ROI is less than I generally like to secure, but the timing of things makes this purchase beneficial in a number of ways.

My concern is that the purchase price is what I would call "low market" for the Portland-Metropolitan area, which is smoking hot right now and prices are way up. If one side is not rented I will need to cover about $350 a month out of pocket for PITI. In the 2008 real estate pullback did the vacancy rate increase significantly from previous years because people were losing their jobs, or did more people begin to rent because they were losing their home ? Or was it a wash ? Higher turnover ?

Would most long term passive investors be happy with this ROI ?

Thanks in advance for your input !

Mary