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

Here's the thing — you only need to understand 5 numbers to know if a deal is worth it:

1. Cap Rate — Net operating income ÷ purchase price. Anything above 6% in most markets is solid for your first deal.

2. Cash-on-Cash Return — Annual cash flow ÷ total cash invested. Target 8%+ minimum. If you can't hit this, the deal probably isn't worth the headache.

3. The 1% Rule — Monthly rent should be at least 1% of purchase price. $200k property? You want $2,000/mo minimum rent. It's a quick filter, not gospel.

4. Debt Service Coverage Ratio (DSCR) — Net operating income ÷ annual debt payments. Lenders want 1.25+. If you're below 1.0, you're losing money every month.

5. Vacancy Rate — Budget 8-10% for vacancy. If the area's average is higher, factor that in or walk away.

That's it. Run these 5 numbers on any property and you'll know within 10 minutes whether to dig deeper or move on.

I break down real deals using this exact framework inside RealEdge Academy every week. No fluff, just the math that matters.