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.

所有跟帖： 

• my cost is much lower because mine were cash buys. -sweetptt- ♂ (0 bytes) () 06/17/2012 postreply 11:38:53

• Rich people BSO!!! -naive2- ♀ (34 bytes) () 06/17/2012 postreply 11:39:44

• Co：Rich people BSO!!! -小心翼翼的小地主- ♀ (0 bytes) () 06/17/2012 postreply 14:04:28

• 这种stress condition是不是要大萧条,大灾难, 或者战争时候才会出现吧? -小糊涂仙儿- ♀ (0 bytes) () 06/17/2012 postreply 11:49:06

• 如果一个大公司迁移办公室也有可能造成出租率下降。。 -美蓝海- ♀ (0 bytes) () 06/17/2012 postreply 12:15:32

• 有道理, 看到有的办公室空了很长很长时间了. -小糊涂仙儿- ♀ (0 bytes) () 06/18/2012 postreply 10:52:33

• 30% is good threshold. -美蓝海- ♀ (0 bytes) () 06/17/2012 postreply 12:02:51

• 看不懂，不过俺胆小一定会100% cash。人又懒，会拖人管理。 -Mom2016- ♀ (0 bytes) () 06/17/2012 postreply 12:39:42

• mine cost is only properties tax and insurance. :) -一生有求- ♀ (0 bytes) () 06/17/2012 postreply 12:49:04

• I can survive a 100% vacancy and 100% price drop -滚雪球- ♀ (244 bytes) () 06/17/2012 postreply 15:20:09

• 回复：I can survive a 100% vacancy and 100% price drop -滚雪球- ♀ (91 bytes) () 06/17/2012 postreply 15:22:12

• 有没有想过再多买几个投资房？ -HappyWed- ♀ (0 bytes) () 06/17/2012 postreply 15:45:57

• 不是不想，但是已有四个贷款。银行不给贷了。 -滚雪球- ♀ (43 bytes) () 06/17/2012 postreply 17:02:46