The 30-Second Deal Test I Use Before Looking at Any Property
Most new investors waste hours on deals that were dead on arrival. Bad cap rate, negative cash flow, hidden red flags — all stuff you could've caught in 30 seconds if you knew where to look.
Here's the quick framework I run on every single deal before I spend another minute on it:
1. Cap Rate Check — If the cap rate is below 5% in a market where 7%+ is standard, it's overpriced. Move on.
2. Cash Flow Estimate — Take the monthly rent, subtract PITI (principal, interest, taxes, insurance), property management (10%), vacancy (8%), and maintenance (5%). If you're not clearing at least $200/month per unit, the numbers don't work.
3. Red Flag Scan — Flood zone? Foundation issues? Declining neighborhood population? Any one of these can turn a "great deal" into a money pit.
4. The Verdict — After 30 seconds: Buy, Pass, or Dig Deeper. Most deals are a pass. That's the point — you save your energy for the ones that actually pencil out.
I built PropIQ to automate this entire process with AI. Plug in any property, get the score instantly. No spreadsheets, no guessing.
If you're analyzing more than 2-3 deals a week, you need a system. This is it.
