The 4 numbers that decide every deal I buy in Memphis

The 4 numbers that decide every deal I buy in Memphis

James JonesPro Member
Investor · Collierville, TN 38017 · Member since 2017 · 876 posts · 614 votes

The 4 numbers that decide every deal I buy in Memphis

I run every single-family deal through the same 4 numbers before I make an offer:

1. Purchase + rehab — my all-in cost. I buy under $100K and rehab to force equity.

2. ARV — verified with 3+ sold comps in the same ZIP, never Zillow.

3. Monthly rent — Section 8 pays $1,395–$1,950 for a 3BR in my ZIPs. I underwrite to the low end.

4. The 1% check — monthly rent divided by all-in cost. Not at or above 1%? I walk.

236 doors later, that 4-number screen has saved me from more bad deals than any course ever did.

What's your #1 deal-breaker number? Drop it below. 👇

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  • Accountant · Las Vegas · Member since 2026 · 14 posts · 6 votes
    3w

    @James Jones, I like that you use the same four numbers before every offer and estimate rent at the low end. That consistency makes your approach easy to follow.

    From my property accounting experience, my deal-breaker would be too little cash left after taxes, insurance, maintenance, vacancy, mortgage payments, and money set aside for future replacements. Two properties can pass the same 1% check but leave very different amounts for their owners to keep. I’d look closely at what the rehab covers, too. A roof with only a few years left can affect the numbers even if it isn’t leaking today.

    Which expense most often changes your mind after a deal passes your screen?

  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    3w

    Dude, I thought we went over how ZIP codes can be dangerous?

    Rest is MANDATORY!

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