Realtor · Columbus, Franklin County · Member since 2026 · 37 posts · 7 votes
After 17 years of buying value-add rentals, here's the filter I run before I'll offer on a 1-4 unit:
1. Rents: I check comps for the exact unit type on that street, and I confirm them with a property manager. Zip code averages lie.
2. Expenses at real numbers: taxes from the county auditor, a real insurance quote, 8–10% vacancy, management even if I self-manage, and capex reserves for roof, HVAC, sewer line, and lead-safe work on pre-1978 homes.
3. Today's rate with 25% down. If it doesn't clear 1.25x DSCR and positive cash flow near asking price, I pass. I don't count on a lowball offer making it work.
4. The forced appreciation is in the rehab scope: does it lift rent or value more than it costs?
What does your offer checklist look like? Happy to compare notes on any Columbus deal.
Hey BJ, this is a solid checklist — especially the street-level comps and counting management even if you self-manage. That's where a lot of 'good on paper' duplexes fall apart.
The only thing I'd add before I make an offer is a financing check on the same numbers, not after:
Run the DSCR on the full PITIA at today's rate with your 25% down, just like you're doing, and make sure it still clears with vacancy and capex baked in — not just on a best-case rent.
Also check your exit before you buy. If the plan is to rehab and refinance, seasoning can trip you up, and InvestorEdge DSCR has no seasoning requirement, so a recent rehab doesn't automatically mean a long wait to refi.
And don't let a thin credit file kill a deal before you've checked the actual program — V50 requires no minimum credit score.
If it doesn't clear on real rents, real expenses, and today's rate near asking, I pass too. No lowball fantasy required. Happy to compare notes on a Columbus deal — Dan
Hey BJ, this is a solid checklist — especially the street-level comps and counting management even if you self-manage. That's where a lot of 'good on paper' duplexes fall apart.
The only thing I'd add before I make an offer is a financing check on the same numbers, not after:
Run the DSCR on the full PITIA at today's rate with your 25% down, just like you're doing, and make sure it still clears with vacancy and capex baked in — not just on a best-case rent.
Also check your exit before you buy. If the plan is to rehab and refinance, seasoning can trip you up, and InvestorEdge DSCR has no seasoning requirement, so a recent rehab doesn't automatically mean a long wait to refi.
And don't let a thin credit file kill a deal before you've checked the actual program — V50 requires no minimum credit score.
If it doesn't clear on real rents, real expenses, and today's rate near asking, I pass too. No lowball fantasy required. Happy to compare notes on a Columbus deal — Dan
I agree this is a rock solid checklist. I'd add a few things from my experience, particularly verifying that all units are legally permitted for rental, stress-testing the numbers against rising taxes and insurance, and paying close attention to sewer, foundation, plumbing and major mechanical systems. I'd also look closely at tenant turnover and operating costs because strong projected rents don't always translate into strong cash flow. One other thing I believe is important is having an exit strategy before purchasing. A deal should make sense based on today's numbers, not just the appreciation you hope to see tomorrow. Great framework overall!
BJ, this is a great filter — and coming from a fellow Realtor who works with investors daily, the part I'd underline is your street-level rent check. That's where most underwriting dies in practice. ZIP-code averages hide the two-block differences that decide whether a duplex actually rents at your number. The other thing I'd add for out-of-state buyers: lean on your agent for more than the showing. A local agent can pull the exact unit-type comps, flag which streets lease fast, and tell you which rehabs actually move rents in that submarket versus which ones just cost money. Your point about not counting on a lowball offer is spot on — I tell my buyers the same thing. If it only works with a miracle discount, it's not a deal, it's a hope.