Real Estate & Mortgages

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Break-Even Occupancy

Occupancy needed to cover expenses and debt.

Formula

BE = \frac{OE + D}{GPI}

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Variables

BEBreak-even occupancy

OEOperating expenses

DDebt service

GPIGross potential income

Example

OE+D=$70k, GPI=$100k: BE = 70%

Did You Know?

A rental that needs 90%+ occupancy just to break even leaves no margin for vacancies — a red flag.

real estate occupancy break-even

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