Most people who try to get into real estate fail before they ever close a deal — not because the market is too hard, but because they wait for the "perfect" deal instead of understanding what makes any deal work.

Here's the actual framework I use to evaluate any property in under 10 minutes:

1. What's the gross rent multiplier (GRM)?

Take the purchase price ÷ annual rent. Anything below 10 in most markets is worth looking at more closely.

2. Run the 50% rule

Assume 50% of gross rent goes to expenses (taxes, insurance, maintenance, vacancy, management). Whatever's left is your rough NOI. Does it cover your mortgage payment?

3. Check the neighborhood trajectory

Is the area improving or declining? Look at new businesses opening, school ratings, permit activity. You want to buy where things are getting better — not where they peaked 10 years ago.

4. What's your exit?

Every deal needs at least two exits: can you rent it profitably AND sell it for a gain within 5 years if you had to?

If a property passes all four filters, it's worth doing a full analysis on.

This is the kind of framework we break down in depth inside our community. If you're serious about building a real estate portfolio, this is where to start.