Most new investors get caught up chasing deals. They see a "discounted" property and jump in without running the numbers. That's how you lose money in real estate.

Before I even look at a property, I run 3 numbers. If they don't check out, I move on — no exceptions.

1. The 1% Rule

Monthly rent should be at least 1% of the purchase price. A $150K property should rent for $1,500/month minimum. If it doesn't hit that, the cash flow usually isn't there. Simple filter that saves you hours of analysis.

2. Cash-on-Cash Return (CoC)

This tells you how hard your actual cash is working. Take your annual pre-tax cash flow and divide it by the total cash you invested. I don't touch anything under 8-10%. If your money isn't outperforming an index fund, why take the risk?

3. Cap Rate

Net operating income divided by property value. This strips out financing and tells you what the property itself is earning. I look for 6%+ in most markets. Anything below 5% and you're basically buying appreciation — that's speculation, not investing.

These three numbers keep me disciplined. They've kept me out of bad deals and pointed me toward great ones.

If you want to go deeper — deal breakdowns, off-market sourcing, and how I use AI to find properties before they hit the MLS — that's what we do inside Atkinson Realty.

Most investors overcomplicate rental property analysis. After years of buying and scaling, I've narrowed it down to 3 numbers that tell me everything I need to know before making an offer.

1. Cash-on-Cash Return (Target: 8%+)

Total annual cash flow ÷ total cash invested. If you're putting $50K into a deal, you need at least $4K/year in net cash flow. Anything below 8% and you're better off in an index fund. Simple.

2. The 1% Rule (Quick Filter)

Monthly rent should be at least 1% of the purchase price. $200K property? Needs to rent for $2K/month minimum. This isn't the final answer — it's just the filter that tells you whether to keep analyzing or move on.

3. Cap Rate vs. Your Market Average

Net operating income ÷ property value. Compare this to your local market average. If you're below market cap rate, you're overpaying. If you're above it, dig deeper — there might be a reason, or you might have found a deal.

These 3 numbers take 5 minutes to run and eliminate 90% of bad deals before you waste time on inspections and deeper due diligence.

I break down real deals with these exact metrics inside MainesInc. If you're an experienced investor looking to scale your rental portfolio, come join the conversation.