Most beginners get stuck because they try to analyze everything at once.
Experienced investors simplify first.
The 3-Step Filter That Actually Works
Instead of running full spreadsheets immediately, start here:
Step 1: Rent Reality
Ask:
What will this actually rent for today?
Not:
• renovated assumptions
• “after I fix it” numbers
• optimistic guesses
Look at:
• comparable units nearby
• similar condition properties
• current listings, not just sold data
Step 2: True Monthly Cost
Estimate:
• mortgage (based on your likely financing)
• property taxes
• insurance
Then add a rough buffer:
• maintenance
• vacancy
You don’t need precision yet.
You need direction.
Step 3: The Gap
This is the fastest indicator:
Rent – total cost = your position
• Positive → potential cash flow
• Negative → how much you’re feeding it
Why This Works
This approach:
• speeds up analysis
• prevents overthinking
• helps you review more deals
• builds pattern recognition faster
Common Mistakes
• overestimating rent
• ignoring taxes
• skipping maintenance
• jumping into deep analysis too early
Action Step
Pull one Milwaukee duplex listing today.
Run this 3-step filter in under 10 minutes.
Discussion Prompt
Which part of this process feels least clear right now?
Rent
Expenses
Understanding the gap