1. Income that can actually be collected
Separate asking rents from signed leases and actual collections. Review concessions, vacancy, payment history, and lease expiration dates. For an occupied property, reconcile the rent roll with available operating records. For a proposed lease-up, identify the evidence behind the expected rent and the time required to reach it. Avoid treating a best-case projection as a current operating result.
2. Expenses under your ownership
Review taxes, insurance, management, maintenance, utilities, service contracts, and other recurring costs. Some seller expenses may differ after a transfer or under a new operating plan. Use documented estimates where possible and identify what remains unverified. Do not remove management or maintenance solely because you plan to perform the work yourself; understand the economic cost of that choice.
3. The capital plan
Acquisition price does not include every dollar needed to own the asset. Separate closing costs, immediate work, recurring replacement reserves, tenant improvements, and a liquidity reserve. Inspect the relevant systems and obtain appropriate specialist estimates. Evaluate what happens if the work costs more, takes longer, or delays income. Keep repair assumptions separate from recurring operating expenses.
4. Financing and cash coverage
Use the actual proposed financing structure, including interest rate, amortization, fees, maturity, and any interest-only period. Understand the lender’s definition of debt service coverage and which income and expenses it uses. The site’s Deal Screen is an educational estimate, not a lender commitment, appraisal, or investment recommendation. A refinancing assumption deserves its own downside case.
5. The exit and the downside
Consider who could buy the property, the market conditions that would support the exit, and what happens if you need to hold longer. Examine lower income, higher expenses, additional capital work, and less favorable financing separately and together. A transaction can satisfy a return target and still exceed your capacity to manage it. Discuss legal, tax, financing, and insurance questions with qualified professionals.
Decide what would make you pass
Before sourcing more properties, write down asset type, geography, budget, financing assumptions, management capacity, and non-negotiable limits. Use the Buy Box Builder to organize that initial profile. Bring the source documents and unresolved questions to a broker conversation. No tool or website can establish that an individual investment is suitable for you.