Most new investors waste time on the wrong metrics. They obsess over listing price or "location" without knowing what that actually means in numbers.

After analyzing hundreds of deals, here are the 5 numbers I look at before anything else:

1. Cap Rate (target: 6-10%)

Net Operating Income ÷ Purchase Price. Below 6% and you're overpaying for the market. Above 10% and something's probably wrong — dig deeper.

2. Cash-on-Cash Return (target: 8%+)

Annual pre-tax cash flow ÷ total cash invested. This is YOUR return on YOUR money, not a theoretical number. If it's below 8%, your money works harder in an index fund.

3. 1% Rule (quick filter)

Monthly rent should be ≥ 1% of purchase price. A $200K property should rent for $2K/mo minimum. It's a rough filter, not gospel — but it eliminates 80% of bad deals instantly.

4. DSCR — Debt Service Coverage Ratio (target: 1.25+)

Net Operating Income ÷ Annual Debt Payments. Anything below 1.0 means the property can't cover its own mortgage. Below 1.25 and you're one vacancy away from trouble.

5. Vacancy Rate (local, not national)

Don't use the national average. Pull your specific submarket's vacancy rate. A "great deal" in a 15% vacancy market is a disaster waiting to happen.

The deal-killer most people miss: They run these numbers on the listing numbers. Always re-run them on YOUR numbers — your financing terms, your projected rent (not the seller's), and your estimated repairs.

Inside DealVault, I break down real deals using these exact metrics every week — so you can see what a good deal actually looks like in practice.