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Rental Property Deal Analysis Checklist

7 sections, 30+ line items — everything you need to evaluate any rental property deal.

1. Property Overview

Property address, type, number of units, year built, square footage
Asking price vs. comparable sales (run comps on 3+ recent sales)
Current condition assessment (cosmetic / moderate rehab / full rehab)

2. Income Analysis

Market rent research (3+ comparable rentals in the area)
Current rent roll (if tenants are in place)
Vacancy rate for the area (check local data sources)
Other income sources (laundry, parking, storage)
Gross Potential Income calculation

3. Expense Analysis

Property taxes (verify with county assessor)
Insurance quote (landlord / rental property policy)
Property management fees (typically 8-10% of gross rent)
Maintenance reserves (5-10% of gross rent)
CapEx reserves ($200-300 per unit per month)
Utilities (if landlord-paid: water, electric, gas, trash)
HOA / Condo fees
Landscaping / Snow removal
Vacancy allowance (5-8% of gross rent)

4. Key Metrics

NOI = Effective Gross Income - Operating Expenses Cap Rate Calculator
Cap Rate = NOI / Purchase Price Cap Rate Calculator
Cash-on-Cash Return = Annual Cash Flow / Total Cash Invested CoC Calculator
DSCR = NOI / Annual Debt Service (if using financing) Mortgage Calculator
Monthly Cash Flow = Gross Rent - All Expenses - Mortgage Cash Flow Calculator

5. Financing

Down payment amount and source of funds
Loan type (conventional, DSCR, portfolio, hard money)
Interest rate and loan terms (fixed vs. ARM, amortization period)
Monthly mortgage payment (principal & interest)
Closing costs estimate (2-5% of purchase price)

6. Due Diligence

Property inspection scheduled and completed
Title search is clean (no liens or encumbrances)
Environmental assessment (if commercial or suspect property)
Rent comparables independently verified
Insurance quote obtained from qualified provider
Property management company interviewed (if not self-managing)
Exit strategy defined (buy & hold, flip, BRRRR, 1031 exchange)

7. Go / No-Go Decision

Cash flow positive after ALL expenses (including reserves)?
Cap rate meets your minimum target?
Cash-on-cash return above your threshold?
Adequate cash reserves available post-purchase?
Exit strategy viable in current market conditions?

Final Decision

GO — Make the offer NO-GO — Pass on this deal

Notes: ____________________________________________________________

Put This Checklist to Work

Use our free calculators to crunch the numbers for each line item above.

Cap Rate Calculator Cash-on-Cash Return Rental Cash Flow