All Forum Posts by: Jaycee Greene

I did not analyze it as a section 8 investment. Just used Rentometer median rents. I didn't buy it but it's currently active on market, so the numbers are estimates. I included P&I in the total expenses for simplicity which was about $2109 on its own. Personally, I avoid using cap rate for residential multi because it doesn't account for financing or appreciation and isn't the best metric for owner occupant buyers which I focus on. 

@Jaycee Greene it is a local program. Different towns in Connecticut are rolling out there own and have interesting ways to fund it

@Jaycee Greene incentive targeted at builders. Trying to identify the plans that will result in the lowest cost per sq

Hey BP community,

Over the last few years, I’ve looked at hundreds of rental deals — and if there’s one skill that’s moved the needle the most, it’s underwriting deals quickly and confidently. Speed matters in competitive markets, but so does accuracy.

So here’s my simple, no-fluff framework to underwrite a rental property in under 30 minutes. Whether you’re a beginner or just looking to tighten your process, I hope this helps!

Step 1: Pull the Core Property Info (5 mins)

I grab the listing from the MLS, Zillow or Redfin and jot down:

• Asking price

• Estimated market rent (cross-check Rentometer + Craigslist/Zillow comps)

• Taxes, insurance, HOA (if any)

• Square footage and condition (rough rehab estimate)

• Year built, bed/baths, lot size

💡 Pro tip: Bookmark a few rent comp tools and create a deal template in Excel or Google Sheets to speed this up.

Step 2: Estimate Income & Expenses (10 mins)

Income:

• Monthly Rent: Estimate conservatively.

• Other income: Laundry, pet rent, storage? Optional but nice to add.

Expenses (as % of rental income or fixed):

• Vacancy: 3–6%

• Maintenance: 5–8%

• CapEx: 5–8% (especially if roof, HVAC, etc. are aging)

• Management: 8–10% (even if self-managing, I budget this)

• Property Taxes & Insurance: Use actual or estimate based on comps. Taxes are public record on the county website.

• You'll also need P&I: A spreadsheet calculator can do the trick

📈 Try not to be too conservative. This was a mistake I made at first and I could never find anything that penciled out!

Step 3: Run the Numbers (10 mins)

Now I plug everything into a simple cash flow calculator (BiggerPockets or my spreadsheet). I’m looking for:

• Monthly Cash Flow: Positive is a must, but I also want buffer. 

• Cash-on-Cash Return: Targeting 5-10%+ for rentals is usually a pretty good idea in this market.

• Total Return: All returns including appreciation and loan paydown. 

If it's a BRRRR or flip — I'd also:

• Estimate rehab costs

• Determine ARV

• Use the 70% Rule (or my own variation) to decide max allowable offer

Step 4: Go/No-Go Decision (5 mins)

At this point, I ask:

• Do the numbers hit my criteria?

• Is it worth more time (contacting agent, running deeper comps, walking the property)?

• Can I make a strong offer with confidence?

• Are there some things I can do to make it work?

If yes → I take the next step.
If no → Pass and move on. Time is money.

Real-World Example:

I recently looked at a Triplex listed for $450K.

• Total Rents: $4,750/month

• All-in expenses (with CapEx, PM, vacancy, etc.): $3,734

• Cash Flow: ~$1,017/mo

• Cash-on-Cash: ~8.65% on a 25% down loan

🔍 Took 27 minutes

Final Thought:

This process isn’t perfect — but it gets me 80% of the way there fast. And that’s enough to separate the deals from the duds.

How do YOU underwrite your deals?
Got a favorite tool or spreadsheet you swear by?

Drop your tips (or questions) below 👇 Let’s compare systems.

Several municipalities near me are offering grants to build affordable single family homes. Looking to understand what building plans have worked for others doing the same?

$250,000 with 20% down at a min.

Where would you go for FMR. I went to Zillow and looked for available rentals in that zip code and found 1250 ish/m.

Looking at others that are available, they rent for that. I'm not sure what FRM is, but I did a quick Google and AI search, and they both indicate 1250/m for a two-bedroom, one-bathroom apartment. I may be able to get a little more after renovating, but I would have to purchase it for far less.

Ok, so that property doesn't need too much renovating, just off of brief research, and it seems that the median rent for a 2-bed 1-bath would be $1250, which is what they are charging the one tenant they currently have.  The property would have negative cash flow if I purchased and did nothing with it.  Originally looked good, but after running brief numbers on it, it would not be something I would be interested in.  Conservatively, it would have a -20% cash on cash.  Properties I'm willing to purchase should have an 8 to 12% cash-on-cash.

Hey there!

If you're a slow flipper in Memphis, please share with me 1) what contracts you use and 2) info about the foreclosure/eviction process.

Thanks!

Jill