Investor · Cleveland Ohio · Member since 2023 · 331 posts · 66 votes
After analyzing thousands of properties I have come to realize that having properties and making them fit numbers is better than having numbers and making them fit properties
Anthony, I land on the other side of that — numbers first, property second, every time. My first screen takes about a minute: does the rent clear the 1% rule against the purchase price? In Memphis I buy single-family under $100K and need Section 8 rent of $1,395-$1,950 on a 3BR+ to even keep looking. Second screen is the refinance: will the ARV land in my $180K-$265K range so a DSCR loan at 70-80% LTV actually recycles my capital? If either screen fails, I pass and move on. At 236 properties, discipline on the front end is what keeps the portfolio boring in a good way.
I'd push back gently on the idea of finding properties first and making the numbers fit — that's exactly how investors talk themselves into bad deals. The numbers are the discipline that protects you. That said, there are more lenses than the basic calculator: run every deal through multiple exit strategies (what does it need to look like as a flip vs. a BRRRR vs. a straight rental?), do sensitivity analysis (what happens if rents come in 10% lower or rehab runs 20% over?), and factor in your time — a deal that ties up your capital for 9 months isn't the same as one that frees it in 90 days. More analysis is good. Just don't let creativity with the math replace the math.