Memphis Vacancy Rate
I have seen a few posts recently and researched some data about the vacancy rate. It seems 2014 was about 10.65%. I am trying to acquire my second property in Memphis and want to make sure I use the correct vacancy rate for the area. When analyzing my first deal I used 8%. At the time it seemed reasonable based on what a few turnkey companies and PMs were advertising. Also I was under the impression that there was a significant demand on the rental market at the moment. I am not worried as I have margin in the cash flow for the first property.
Did I misjudge? For my next property should I use a more conservative 10% vacancy rate? Obviously being more conservative and performing better is just fine, but I do not want to pass up perfectly good properties because they are borderline to my to my target COC.