stress test....

stress test....

TT brought up a good point, can a professional landlord survive on a 30% vacancy rate?

on back of my mind, I usually think we can survive on 75%, if any lower, I have to be hand on again...

so look back last 18 month, here my break down.

Hard cost:
Interest 33%
fixed mortgage principle paydown 4%
Tax 12%
Insurance 4%
Supplies & Materials 4%
Utilities & others 7%

total fixed cost 64%

Soft cost:
Private interest only note principle paydown 4%
labor cost 5%

total soft cost 9%

total: 73%

our avg collection rate last 5 years about 95%

so if we collect less than 70%, I have to work 100 hours a week to survive.