Underwriting Frustrations - Omaha, Nebraska

[Scott Phillips]

Ok BP Community, I’m hitting a wall and could use some perspective.

I've been analyzing deals for a few months now, which I know isn't a long time, but I'm getting increasingly frustrated. My primary goal is long‑term equity growth, so cash flow isn't my top priority. That said, I'm still underwriting responsibly with reserves for CapEx, maintenance, vacancy, and management (8% each).

The problem is: almost every deal ends up with negative cash flow and negative cash‑on‑cash return once I factor in those reserves. I can get close to break‑even if I assume a discounted purchase price, but single‑family homes in my market are selling at full asking price within days, often with waived inspections and cash offers.

I keep hearing on podcasts, “Just buy your first deal and avoid analysis paralysis,” but honestly, it’s hard to justify pulling the trigger when the numbers look this tight.

So I’m curious how others here are approaching underwriting in today’s market:

• Do you consider break‑even acceptable if reserves push it negative?
• Do you underwrite differently when your main goal is equity growth rather than cash flow?

Any advice would be greatly appreciated before I decide to throw the money back into the stock market and spend the next decade wondering what could have been.

Thanks, everyone.