Education Deal Analysis
A Fifteen-Minute First Pass on Any Rental Deal
A timed routine for screening a rental quickly, covering rent, expenses, cash flow, cap rate, cash-on-cash, coverage, and deal breakers, plus a simple scorecard.
You do not need hours to decide whether a property deserves a closer look. A focused fifteen-minute routine can eliminate most weak deals and identify the ones worth deeper due diligence.
Why a quick pass matters
Good properties attract interest quickly. A consistent, fast first pass helps you respond sooner while saving detailed work for the best candidates.
What to gather first
Listing price, photos, property details, estimated taxes, and a few comparable rentals. Have your financing assumptions ready.
Minutes 1 to 3: rent
Check three comparable rentals with similar size and condition nearby. For voucher strategies, check the payment standard for the bedroom count. Use a conservative figure.
Minutes 3 to 5: expenses
Estimate taxes (after a possible reassessment), insurance, utilities you pay, maintenance, capital reserves, management, and vacancy.
Minutes 5 to 7: cash flow
Subtract expenses and the full loan payment from rent. Is the result positive with room to spare?
Minutes 7 to 9: cap rate
Divide net operating income by price. Compare with what similar properties in the area typically show.
Minutes 9 to 11: cash-on-cash
Divide annual cash flow by your total cash invested. Does it meet your goal?
Minutes 11 to 13: coverage
Divide net operating income by annual loan payments. Many investors want at least about 1.2.
Minutes 13 to 15: deal breakers
Scan for major issues: foundation, roof, flood zone, title concerns, unpermitted work, or restrictions on renting.
A simple scorecard
Give each item a pass, borderline, or fail:
- Rent verified
- Expenses complete
- Cash flow positive with cushion
- Cap rate reasonable for area
- Cash-on-cash meets target
- Coverage above minimum
- No obvious deal breakers
All passes earn a deeper look. Any fail usually means move on unless the price can change.
Manual or assisted?
Doing this by hand builds understanding. Once you know the steps, tools can speed them up. The S8 Atlas Deal Analysis and AI Analyze features run a similar first pass on every Michigan and Ohio listing, which you can then verify.
PUT IT INTO PRACTICE
Run these numbers on live listings
Browse current Michigan and Ohio listings in the S8 Atlas Deal Finder and use Deal Analysis and AI Analyze to stress-test any property, then verify everything with your own professionals.
Open the Deal Finder