Calculate vacancy & bad debt sensitivity for real estate investments and properties
Enter gross potential rent, operating expenses, debt service, and test different vacancy/bad debt percentages. See impact on cash flow and DSCR.
At 5% vacancy, property cash flows $45,000 with 1.25 DSCR. At 10% vacancy, cash flow drops to $18,000 with 1.10 DSCR.
5-8% is typical for multifamily in healthy markets. Budget conservatively. Class C properties may see 10-15%, while Class A might be 3-5%.
1-3% is typical. Includes uncollected rent, eviction costs, and tenant damage beyond deposits. Higher in weaker tenant markets.
Shows how deal performs under different scenarios. If 10% vacancy kills cash flow, deal is too risky. Want deals that work even with higher vacancy.