Most new investors spend weeks analyzing a deal only to realize it was never going to work.

Here's the quick filter I use on every sub-$1M residential property:

1. The 1% Rule (modified)

Monthly rent should be at least 0.8% of purchase price. Below that? Move on. The margins won't survive vacancies and maintenance.

2. Three Comps, Same Zip

If you can't find 3 comparable sales within the last 6 months in the same zip code, the market is too thin. Liquidity matters when you need to exit.

3. Insurance Quote Before Offer

Call your insurance agent before you even think about making an offer. I've seen deals where insurance alone ate 40% of projected cash flow. Foundation issues, flood zones, old roofing — all show up here first.

4. Property Tax Trajectory

Don't look at current taxes. Look at the last 3 years of increases. A property that "cash flows" at today's tax rate might not after a reassessment post-purchase.

5. The Vacancy Stress Test

Model 2 months vacant per year, not 1. If the deal still works, it's actually worth pursuing.

This takes me about 5 minutes per listing. 90% of properties fail one of these filters. That's the point — you want to eliminate fast so you can go deep on the deals that actually matter.

I built a full evaluation framework around this approach. It covers everything from neighborhood scoring to deal-breaker checklists to cash flow templates. Check it out if you're serious about building a system for this.