The deal looked fine until vacancy and repairs got a real line.

Illustrative rental (not a real deal):

• Rent $2,400 · ops $620 · mortgage P&I $1,480

• Optimistic (no vacancy, no maint): +$300/mo · CoC 6.0% on $60k

• Vacancy 5% = $120 · maintenance reserve $100

• With buffers: +$80/mo · CoC 1.6% · thinning $220/mo ($2,640/yr)

Vacancy rate = % of rent. Maintenance reserve = routine repairs. CapEx sinking fund is separate.

ONE STEP: add vacancy % + maintenance reserve lines before you trust cash flow or CoC.

Try Cashflow Analyzer Pro — rental analysis with vacancy and repair reserves among the outputs.

More from Asset AFC.

Illustrative numbers only; not investment advice.