Most people spend weeks staring at Zillow listings and never pull the trigger. Here's the exact process I use to know if a deal is worth pursuing in under 10 minutes.

Step 1: The 1% Rule (30 seconds)

Monthly rent should be ≥ 1% of purchase price. $150K house? Better rent for $1,500+/month. If it doesn't pass, move on. This isn't perfect, but it filters out 80% of bad deals instantly.

Step 2: Estimate Cash Flow (2 minutes)

Gross rent minus:

• Mortgage payment (use a calculator, assume current rates)

• Property taxes (÷ 12)

• Insurance (~$100-150/month for a single family)

• Vacancy (8% of rent)

• Maintenance (10% of rent)

• Property management (10% of rent — even if self-managing, account for it)

If you're above $200/month cash flow, keep going.

Step 3: Check the Neighborhood (3 minutes)

Look at three things:

• Population growth — is the city/area gaining people?

• Job growth — any major employers or industries coming in?

• Rent trends — have rents gone up over the past 2-3 years?

If all three are positive, the deal has a tailwind behind it.

Step 4: Calculate Cash-on-Cash Return (2 minutes)

Annual cash flow ÷ total cash invested = your CoC return. You want at least 8-10%. Anything above 12% is a strong deal.

Step 5: Look for the Exit (2 minutes)

Could you sell this in 5 years for more? Could you refinance and pull your cash out? If there's no exit, it's not an investment — it's a trap.

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That's it. 5 steps, 10 minutes. Most investors overcomplicate this because they're scared to make a move. The math either works or it doesn't.

I break down real deals like this every week inside The Vault. Numbers, strategies, templates — everything you need to actually start investing instead of just researching.

Most people lose money in real estate because they buy on emotion. They see a "good deal" on Zillow, get excited, and skip the math.

Here are the 5 numbers that separate investors who build wealth from investors who go broke.

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1. Net Operating Income (NOI)

NOI = Gross Rental Income − Operating Expenses

This is the profit your property generates before your mortgage payment. Operating expenses include taxes, insurance, maintenance, vacancy, and property management — but NOT your loan payment.

Example: $1,500/mo rent → $18,000/year gross → $6,000 in expenses → NOI = $12,000

If you only remember one number, remember this one. Everything else is built on it.

2. Cap Rate

Cap Rate = NOI ÷ Property Value × 100

Cap rate tells you what return you'd earn if you bought the property in cash. It's how you compare deals across different price points.

• $12,000 NOI on a $200,000 property = 6% cap rate

• $12,000 NOI on a $150,000 property = 8% cap rate

Higher cap rate = higher return (but often higher risk). Most investors target 6-10% depending on the market.

3. Cash-on-Cash Return

Cash-on-Cash = Annual Cash Flow ÷ Total Cash Invested × 100

This is your actual return on the money you put in — including your down payment, closing costs, and rehab.

Example:

• You invest $45,000 total (down payment + closing + repairs)

• Property cash flows $4,500/year after mortgage

• Cash-on-Cash = 10%

Compare this to the stock market (~8% average). Real estate can beat it and you're building equity.

4. Debt Service Coverage Ratio (DSCR)

DSCR = NOI ÷ Annual Mortgage Payments

Banks use this to decide if your property can cover its debt. A DSCR above 1.0 means the property pays for itself. Most lenders want 1.2-1.25 minimum.

• $12,000 NOI ÷ $9,600 annual mortgage = 1.25 DSCR ✅

• $12,000 NOI ÷ $13,000 annual mortgage = 0.92 DSCR ❌ (you're losing money monthly)

5. The 70% Rule (For Value-Add Deals)

Maximum Purchase Price = (ARV × 70%) − Rehab Costs

When you're buying a property to renovate, this keeps you from overpaying.

• After Repair Value (ARV): $250,000

• 70% of ARV: $175,000

• Estimated rehab: $30,000

• Max purchase price: $145,000

This builds in a 30% margin for profit, closing costs, and surprises.

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The Bottom Line

Real estate isn't complicated. It's just math. Run these 5 numbers on every deal, and you'll immediately know if it's worth pursuing or if you should walk away.

Most people never learn this. Now you know more than 90% of "investors" out there.

Want the full playbook? The Vault has everything — deal analysis templates, financing strategies, and a private community of builders. Link's in the bio.

The BRRRR Method Explained: How to Recycle One Down Payment Into a Portfolio

If house hacking is how you start, BRRRR is how you scale. This strategy lets you pull your capital back out after every deal — so you can reinvest it into the next one.

BRRRR = Buy, Rehab, Rent, Refinance, Repeat

Step 1: Buy — Find a distressed property below market value. Foreclosures, off-market deals, or properties that need cosmetic work are your targets. You're buying at 70-75% of the After Repair Value (ARV).

Step 2: Rehab — Fix it up to force appreciation. Focus on high-ROI renovations: kitchens, bathrooms, flooring, paint. Don't over-renovate — you're not flipping, you're renting.

Step 3: Rent — Place a qualified tenant and stabilize the property. Get 2-3 months of rental income on the books.

Step 4: Refinance — Go to a lender and refinance based on the NEW appraised value (post-rehab). If you bought at $120K, put $30K into rehab, and it appraises at $200K — you can pull out up to 75% = $150K. That's your original $150K back.

Step 5: Repeat — Take that capital and do it again. And again.

Why BRRRR Is Powerful

• You get your money back (or most of it) on every deal

• You keep the property, the cash flow, AND the equity

• You build a portfolio with the same capital recycled over and over

The Catch

BRRRR requires accurate ARV estimates, reliable contractors, and the discipline to buy right. If you overpay or over-rehab, the refinance won't cover your costs and your capital gets stuck.

Start here: Analyze 10 deals on Zillow using the 70% rule. Purchase price + rehab costs should be ≤ 70% of ARV. If you can find 2-3 that work on paper, you're in a good market for BRRRR.

Questions about running the numbers? Drop them below. 👇

House Hacking: How to Live for Free While Building a Real Estate Portfolio

Most people think you need $100K saved to start in real estate. You don't. You need a strategy — and house hacking is the most powerful one for beginners.

What Is House Hacking?

You buy a small multifamily property (duplex, triplex, or fourplex), live in one unit, and rent out the rest. The rental income covers your mortgage — and often puts money in your pocket.

Why This Works So Well

1. Owner-occupied financing — You qualify for FHA loans with as little as 3.5% down. On a $200K property, that's $7,000 instead of $40,000.

2. Your tenants pay your mortgage — A duplex where you live in one side and rent the other for $1,200/mo can cover your entire PITI payment.

3. You learn landlording with training wheels — You're right there to handle issues, build systems, and gain confidence before scaling.

4. After 12 months, you can move out — Rent both units, buy your next property, and repeat.

Real Numbers on a Duplex

Compare that to paying $1,400/mo in rent with zero equity. In one year you've built ~$8K in equity, saved $12,600 in housing costs, AND you own an asset.

The 3-Step Action Plan

1. Get pre-approved with a local lender who does FHA loans

2. Search for duplexes/triplexes in your target market on Zillow, Redfin, or your local MLS

3. Run the numbers using the 1% rule and 50% rule before making any offer

This is how you go from renter to investor in 90 days.

Drop a 🔥 if you're going to try house hacking this year.

Most people overthink their first rental property. They spend months analyzing and never pull the trigger.

Here's the exact framework I use to screen deals fast:

The 1% Rule

Monthly rent should be at least 1% of the purchase price. A $150K property should rent for $1,500/mo minimum. If it doesn't pass this test, I move on immediately.

The 50% Rule

Assume 50% of gross rent goes to expenses (taxes, insurance, maintenance, vacancy, management). The other 50% covers your mortgage and profit.

Quick math on a real deal:

• Purchase: $120,000

• Rent: $1,400/mo ✅ (passes 1% rule)

• Expenses: $700/mo (50%)

• Mortgage (30yr, 7%): ~$640/mo

• Cash flow: $60/mo → $720/year

Not life-changing cash flow, but you're building equity, getting tax benefits, and your tenant is paying down your mortgage.

Stack 5 of these and you're at $3,600/year passive income while building a $600K portfolio.

The game is volume + patience. Your first deal doesn't need to be a home run — it needs to be a base hit that teaches you the process.

What's stopping you from analyzing your first deal this weekend?

Most people overthink real estate analysis. Here's the fastest filter I use before I even look at a property listing in detail:

The 1% Rule: Monthly rent should be at least 1% of the purchase price.

$200,000 property → needs to rent for $2,000/month minimum.

$150,000 property → needs to hit $1,500/month.

If it doesn't pass? I move on. No spreadsheet needed.

This one filter alone saves me hours every week and keeps me focused on deals that actually cash flow.

It's not perfect — you still need to run full numbers on deals that pass — but it eliminates 80% of bad deals instantly.

Inside Equity Academy, I break down exactly how I go from the 1% screen to full deal analysis, financing strategies, and building a portfolio that actually pays you every month.