Buying a bad rental is expensive — the numbers must work before you make an offer. These 8 field-tested tips cut straight to what makes the biggest difference for real estate investors — and at the end you will find a free app that makes following them effortless.
1. Underwrite conservatively — pad expenses, not income.
2. Always allow for vacancy, maintenance and capex.
3. Compare cap rate within the same market.
4. Cash-on-cash return shows your real yield.
5. Stress-test with higher rates and vacancy.
6. Verify rents with real comparables.
7. Walk away if the numbers do not work.
8. Re-run the analysis before every offer.
Put These Tips on Autopilot
Knowing the tips is half the battle — doing them consistently is the other half. Rental Property Analyzer keeps the routine, does the calculations and reminds you what is next, so good habits stick.
Frequently Asked Questions
What is cap rate?
Net operating income divided by price — a quick yield comparison.
What is cash-on-cash return?
Annual pre-tax cash flow divided by the cash you invested.
How much should I allow for expenses?
Use the 50% rule as a sanity check, then refine with real numbers.
Does it connect to listings?
No — you enter the numbers; it does the analysis privately.
Does it work offline?
Yes — all analysis works without a signal.
Is the app free?
Yes — analysis is free, with an optional ad-free Pro upgrade.