Vacancy rates are sometimes tricky, as you implied. The most common mistake is applying acquired knowledge in one region to another. It doesn’t always translate.

Bawld Guy is spot on about the insurance. Find an agent experienced in insuring rental properties. The company matters as well. Set your deductible at the highest level you can absorb and be prepared to absorb a slightly higher loss instead of filing a claim. Lots of relatively small claims mark you as an undesirable customer. Try getting coverage after your below average company cancels you. I know a couple of people that went through 30 days of panic while they frantically searched for replacement insurance. They thought they could “do better” than taking the advice of the agent or the manager.

Management companies vary from ok to just plain awful. If you are a detail-oriented, picky person, you will never be completely happy with a management company. They are in business to make a profit, and the margins aren’t great even in a well run management business. They tend to skimp a little on the number and quality of employees to keep payroll under control. Don’t expect to call them 10 times a month with little questions and complaints. Speak up, however, if they start spending large sums of money without consulting you first. That’s especially true if they maintain an in-house maintenance staff. From what I have seen, a mark-up on the work is added and the staff is kept employed. If you buy a new property with a builder’s warranty or you get a home warranty when you purchase a resale, make sure the management company has all the pertinent details and they make a note in your file.

Accurately projecting your expenses will make the difference between a profitable and an unprofitable investment. If it’s a money loser, you might have to hire the agent with the rose colored glasses that listed the property when you bought it, and hope to find a greater fool.