Find & evaluate deals

How to decide whether a property is a good deal

Check the evidence, costs, and likely outcome before committing time or money.

The outcome

Make a documented pursue, investigate, or pass decision rather than relying on one headline number.

Before you start

  • Open a candidate property from search or a saved list.
  • Have an initial purchase-price assumption and a target investment strategy.

The workflow

Work through it

6 steps
  1. 01

    Confirm the property you are analyzing

    Check the full address, unit, property type, building size, and lot. If the record identifies a condo unit, do not treat its valuation as the value of the entire building.

  2. 02

    Understand the value estimate

    Review Market value and its source, range, date, and confidence when available. An assessor figure is a tax-related record, not a substitute for a current market valuation.

  3. 03

    Review comparable sales

    Use the Comps section to inspect similar sold properties. Consider location, condition, size, property type, and sale date. Renovated sold comparables are more relevant to an after-repair estimate than an unrelated nearby sale.

  4. 04

    Build the expense assumptions

    Review Scope of work, then include financing, holding, closing, and selling expenses in your analysis. Add a contingency for uncertain renovation items instead of assuming everything will cost the minimum.

  5. 05

    Test the deal analyzer

    Enter your proposed purchase price and realistic assumptions in the Deal analyzer. Check the projected profit or cash flow, then try a lower exit value, higher costs, or a longer holding period.

  6. 06

    Record a decision and the missing evidence

    Use the deal workflow and checklist to identify what must happen next: owner contact, contractor inspection, financing confirmation, or further comps. Treat the deal score as supporting information, not the decision itself.

    Open Deals

Worked example

A deal that needs another look

At a $220,000 purchase, $45,000 renovation, $25,000 other costs, and $320,000 resale, the simple projected spread is $30,000. A $15,000 renovation overrun and $10,000 lower resale would leave only $5,000 before any omitted expenses.