Suppose the market rent for a two bed room unit is 900 per m

Solution

Rent = 900 per month

cap rate = 12%

Acquisition price= 900 x 12 x 100 /12= 90000

Lenders interest = 90000 x 12 / 100 = 10800

break even occupancy rate = 90000/10800= 8.33

So break even vacancy rate upto 91.67