Let’s Talk Deal Analysis – What Framework Do You Use to Underwrite a Deal?

Hey everyone 👋

I’ve been spending more time analyzing potential real estate deals and I want to get better at understanding how to properly underwrite a deal — beyond just using a calculator. I know BiggerPockets has a great tool for this, but I’m really interested in learning the why behind the numbers and building a deeper understanding of the process.

I'm in the Bay Area, California, so I know numbers and margins can look a lot different here compared to other markets — which is why I’d love to hear your approach.

Here’s what I’m trying to understand better:

- What framework do you use to analyze a deal?
-  What percentages or formulas do you rely on (e.g. rehab, holding costs, buffer, etc.)?
-  How do you account for fees, closing costs, holding costs, rehab, and other variables?
- What assumptions do you plug in (ARV, rent estimates, exit strategy)?
-  What are some things you wish you knew early on when you first started underwriting?

I want to move beyond “plug-and-play” calculators and start really learning what makes a deal work — especially in a high-cost market like the Bay.

If you’re open to sharing your thought process, tips, or even walking through an example deal, I’d really appreciate it.