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 · 911 posts · 629 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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  • Investor · Washington, US · Member since 2021 · 132 posts · 39 votes
    2w

    Hope a real capex reserve is one of them. Most single-family numbers pencil fine until you set aside 8-10% for roof, HVAC and turnover, and that is usually the line that kills an otherwise decent deal.

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