Is this rental a good deal? Run the numbers in a minute.

Deal worksheetExample filled in

The house

Price$What you'd pay for it. Monthly rent$/moWhat it will rent for. Ask 3 local property managers.

The loan

Down payment%Usually 20–25% on a rental. Interest rate%Ask us for today's rate.

The bills

Property taxes$/yrOn the county website. Search the address. Insurance$/yrGet a landlord quote from an agent. HOA$/mo$0 if there isn't one.

The fine print

Already filled in with safe numbers

Money you set aside every month Empty months% of rentFor the weeks between tenants. 8–10% is normal. Big repairs% of rentRoof, AC, water heater. 8–10% is normal. Small repairs$/moFaucets, locks, paint. $100–$300 a month. Property manager% of rent8–12% is normal. 0% if you run it yourself. Other monthly bills Utilities you pay$/mo$0 if the tenant pays them. Anything else$/moAny other bill that comes every month. Extra income$/moLaundry, parking, storage. Buying it Closing costs% of priceUsually 2–5% of the price. Repairs before renting$$0 if it's move-in ready. Furniture$Only for short-term rentals. Loan lengthyears30 is normal for rentals. Unitsdoors1 for a house or condo. 2 for a duplex. Worth after repairs$Only if you'll fix it up and refinance.

Deal sheetExample deal

5 checks

Waiting

$0 In your pocket
every month

Cash you bring to closing–

Return on your cash–

Mortgage payment–

Is this rentala good deal?

The house

The loan

The bills

The fine print

Where your rent goes.

Offer less.

Before you make an offer.

Never use the seller's numbers.

Count the empty months and the big repairs.

Walking away is a skill.