The Multifamily Wealth Podcast

#196: "My Vacancy Only Went Up 2%... But My Net Cash Flow Went Down 7.78%?!"


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In this episode of the Multifamily Wealth Podcast, I delve into the true mathematical impact that vacancy has on a multifamily property's net free cash flow. Join us as we break down the numbers and discuss how even a small increase in vacancy can have a significant impact on your bottom line. 

I dive deep into the numbers and explain how vacancy can significantly affect your investment portfolio. We often overlook the impact of vacancy, but once you understand the math behind it, you'll see just how crucial it is to consider when analyzing your investments.

In this episode we discuss:

  • What is the true impact of vacancy on a multifamily property's net free cash flow?
  • How does reducing vacancy by 2% affect net operating income (NOI)?
  • How does leverage and debt service payments magnify the impact of vacancy on net free cash flow?
  • What is the rule of thumb for the potential impact of a 1% increase or decrease in vacancy on net free cash flow?
  • Why is it important for multifamily investors to understand the mathematical impact of vacancy?

Struggling to find good multifamily deals? Looking to close deals with less of your own money? Want to operate like the pros and maximize the cash flow of your assets? Join The Multifamily Wealth Community, where we help multifamily investors start, build, and scale their businesses… specifically, those looking to grow from 1-10 units to 250+ units.

Are you looking to invest in real estate, but don't want to deal with the hassle of finding great deals, signing on debt, and managing tenants? Aligned Real Estate Partners provides investment opportunities to passive investors looking for the returns, stability, and tax benefits multifamily real estate offers, but without the work - join our investor club to be notified of future investment opportunities.

Connect with Axel:
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Learn more about Aligned Real Estate Partners



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The Multifamily Wealth PodcastBy Axel Ragnarsson

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