100% Vacancy

Comments(5)

• 
  tci_Met-West122nd July, 2005

  Hello
  If you and your partner are strong borrowers with decent liquid assets and 45% or less Debt to Income (DTI) you have no problem to obtain a loan.
  You said, It was vacant.
  How much is the vacancy right now?
  tci_Met-West1
  
  
  Quote:
  On 2005-07-22 22:22, RedneckRiviera wrote:
  Hi guys,
  Here is the question from newbie…
  There was a 10-unit renovated apartment complex for sale. My partner decided not to pursue this deal partially because it was 100% vacant and he was concerned that it will take long time to find all 10 tenants…
  How long would it take to find the tenants for 10 apartments? Would this factor stop you to pursue? As far as I know the rental market is good in my area.

• 
  RedneckRiviera23rd July, 2005

  Thank you!
  The property is still 100% vacant as it has just entered the market 10 days ago…
  
  
  We are strong borrowers with DTI of 5% (if my calculations are correct, should be no more than 13% if my calculations are wrong)... We are both inexperienced RE investors...trying to minimize the risk for our first property...[ Edited by RedneckRiviera on Date 07/23/2005 ]

• 
  amerinda23rd July, 2005

  Renting 100% of the units will depend on some of the other factors such as : Employment prospect ...Any major industry / University - College nearby?
  Comparable rents and quality and amenities with the unit such as laundry facility, nearby garden, easy access to highway, shopping center etc.
  Size of the Units: Are these within the range of the market requirement?
  How many rental units presently available in about 5 mile radius? .
  
  However one should always consider about 10 to 15% vacancy rate in any financial calculations to be on safer side.

• 
  amerinda23rd July, 2005

  RedneckRiviera
  Oops sorry, forgot to include your name in the reply

• 
  RedneckRiviera23rd July, 2005

  amerinda, kburkeen,
  Thank You for your valuable input!