First Rental Property Checklist: 10 Numbers to Know Before You Buy

1. Market rent. Verify the actual achievable rent against 3–5 comparable active listings in the same neighborhood, not just the seller's claimed rent.
2. Vacancy allowance. Apply at least 5–8% to your gross rent. Never assume 0% even if there is a tenant in place.
3. Property taxes. Get the exact current annual bill from the county assessor, and check whether the purchase will trigger a reassessment.
4. Insurance. Get a landlord insurance quote before you close. It will be higher than the current owner's homeowner policy.
5. Maintenance budget. Budget 1–1.5% of property value per year. For a $250,000 property, that's $2,500–$3,750/year.
6. CapEx reserve. Budget another 1–1.5% for capital expenditures: roof, HVAC, appliances, water heater. Check the age of each major system.
7. Management fee. Even if you self-manage, include 8–10% of gross rent. If you ever hire a manager or want to sell, the number needs to be there.
8. Monthly mortgage payment. Get a pre-approval with your actual rate and confirm the P&I payment. Also model it at rate +1.5% for stress testing.
9. Monthly cash flow. Gross rent − all expenses − mortgage payment. It should be positive (or you need a clear appreciation thesis for why negative cash flow is acceptable).
10. Cash-on-cash return. Annual cash flow ÷ (down payment + closing costs). Target 6%+ for a healthy first deal.

You don't need a spreadsheet to check all 10 numbers. Enter your deal into the Real-Estate Analyzer and every metric (cap rate, cash flow, CoC return, NOI, and IRR) is calculated in real time. You can then run a stress test to confirm how the deal holds up if vacancy or costs are higher than expected.