📋 Quick Reference

🎯 1% Rule (Quick Filter)

Monthly rent should be ≥ 1% of purchase price.

Use: First pass filter. Markets vary.

💰 Cash-on-Cash Return

Your actual return on cash invested.

📊 DSCR (Debt Service Coverage)

Can the property pay its own mortgage?

🏠 Cap Rate

Return if you paid all cash. Cash flow relative to price.

🔨 70% Rule (Flips)

Never pay more than 70% of ARV minus rehab.

Example: ARV $200K, Rehab $30K → Max $110K

💵 NOI (Net Operating Income)

Money left after operating expenses, before debt.

📋 OpEx Breakdown (Rule of Thumb)

• Property Management: 8-10%
• Maintenance/Repairs: 5-10%
• Vacancy: 5-8%
• CapEx Reserve: 5-10%
• Total: 30-40%

⚠️ Red Flags (Walk Away)

• DSCR < 1.0 after realistic expenses
• Cap rate < 5% with no appreciation
• Cash-on-cash < 10%
• Rehab estimate is "not much"
• Seller won't provide rent comps

✅ Green Flags (Dig Deeper)

• 1%+ rent rule
• DSCR 1.25+ with conservative numbers
• Cash-on-cash 15%+
• Clear value-add path
• Motivated seller
• $20K+ appreciation for <$10K rehab

🗣️ Negotiation Anchors

Price inquiry: "What's the least you'd take for all cash, quick close?"

Pushback: "I buy on cash flow, not hope. Show me rents that support this price."

Anchor: "My numbers have to work at 70% of asking."

📱 Your Current Targets