08/04/2026
bought my first house for $25,000 and rented it for $850 a month.
At the time, I thought that meant it was a great deal.
What I didnāt understand yet was how much the expenses, financing, repairs, market and exit strategy mattered.
I bought before knowing how to properly analyze a deal. That made some of my early properties look more profitable on paper than they actually were.
The more deals I analyzed, the better my decisions became.
These are the six things I look at before buying any property:
1. Location
What is nearby? Is the area growing? Are people moving there?
2. Market and comparable rates
What are similar properties selling and renting for? What is the vacancy rate?
3. The full financial picture
Rental income, operating expenses, construction costs, financing, cash flow, ROI, appreciation and taxes.
4. Property condition
What needs to be repaired now, and what major systems could become expensive later?
5. Financing
Interest rate, down payment, loan terms and how the debt affects cash flow.
6. Exit strategy
Will I sell, refinance or hold? What happens if the original plan does not work?
Years later, I became a partner in a development that produced more than $346,000 in annual NOI and created millions in value.
I learned how to analyze the numbers before getting emotionally attached to the deal.
A property can look exciting and still be a bad investment. The numbers have to work.
