Vacancy is the silent killer of rental returns. Freddie calculates the real cost of vacancy and helps you model accurate cash flow with realistic occupancy rates.
Dan White, 20-year fix-and-flip veteran in Northern Virginia, used FreeDealCalc to analyze a $130,000 wholetail opportunity in under 5 minutes. No spreadsheet. No paid software. Just Freddie.


"I've been flipping houses for 20 years and I built this tool because nothing free was actually good enough. Freddie does what I used to do with spreadsheets — but in seconds, for free, for every investor who needs it."
A buyer who purchases this property as a wholetail deal undertakes all renovation work at their own direction, cost, and risk. The seller makes no representations regarding property condition and all sales are as-is. Buyer is responsible for all due diligence, inspections, and compliance with local codes and regulations.
5% vacancy is a common underwriting assumption for stable single-family rentals in strong markets. 8-10% is more conservative and appropriate for multifamily or markets with higher turnover. Never underwrite at 0% — every property has some vacancy over time even in tight markets.
On a $1,500/month rental, 5% vacancy costs $900/year, 8% costs $1,440/year, and 10% costs $1,800/year. Over a 10-year hold, the difference between 5% and 10% vacancy is $9,000 in lost income. Always model realistic vacancy before buying.
Vacancy rate = (vacant days ÷ total available days) × 100. If a property was vacant for 30 days in a year, vacancy rate is 30/365 = 8.2%. For underwriting, use market data on average days-on-market for rentals in your target neighborhood.
Above-market rent pricing, poor property condition, bad location factors (school district, crime, noise), poor property management, tenant screening issues leading to high turnover, and market-level oversupply. Identifying and addressing the cause is more valuable than just modeling the cost.
Price at or slightly below market rents for faster leasing. Maintain the property well to retain good tenants. Screen tenants thoroughly to reduce turnover. Offer lease renewal incentives. Start marketing 60 days before current lease expiration. Build relationships with local relocation companies.
Physical vacancy is units that are literally empty. Economic vacancy includes physical vacancy plus rent concessions, delinquent tenants, and below-market rents. Economic vacancy gives a more accurate picture of actual income loss. Always underwrite using economic vacancy for conservative analysis.
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