Most beginner investors lose money on their first rental because they only look at two things: purchase price and monthly rent.

That's like buying a car based on color and hoping the engine works.

After analyzing hundreds of rental deals, here are the 8 parameters that actually determine whether a property is profitable:

1. Cash-on-Cash Return — What's your annual return on the actual cash you put in? Below 8%? Walk away.

2. Cap Rate — Net operating income divided by purchase price. Anything under 5% in most markets means you're overpaying.

3. Debt Service Coverage Ratio — Can the property's income cover the mortgage with room to spare? Below 1.25x is a red flag.

4. Gross Rent Multiplier — Purchase price divided by annual gross rent. Over 15? The math is working against you.

5. Operating Expense Ratio — What percentage of rent gets eaten by expenses? Over 50% and you're running a charity.

6. Vacancy Rate Assumption — Using 0% vacancy is fantasy. Realistic investors assume 5-8% minimum.

7. Monthly Cash Flow — After ALL expenses (including reserves), what's left? $200/door is the floor.

8. Breakeven Price — The exact price where the deal flips from loss to profit. If the asking price is above this, the deal is dead.

Most investors check 2-3 of these. Professionals check all 8 before they even schedule a showing.

I built DealGate to run all 8 in under 60 seconds so you stop wasting time on dead deals.