Numbers — verify, don't trust
- Confirm actual rents with leases or the rent roll — not the listing agent's 'pro forma'
- Pull the actual property tax bill from the county site (taxes often jump after sale — check reassessment rules)
- Get a real insurance quote for THIS address (flood zone? old roof? claims history?)
- Verify market rent with 3+ comps on Zillow / Rentometer / a local PM company
- Ask for 12 months of utility bills if owner-paid
- Check HOA dues, special assessments and reserve health if applicable
- Confirm existing leases transfer, and get security-deposit accounting
Physical — the big five cost items
- Roof: age, remaining life, active leaks (replacement $8–15k+)
- HVAC: age and service history (replacement $5–12k)
- Water heater: age (replacement $1.5–2.5k)
- Electrical: panel brand and amps — Federal Pacific & Zinsco panels are insurance problems
- Plumbing: material (polybutylene / galvanised = trouble), water pressure, signs of leaks
- Foundation: cracks, doors that don't close, sloped floors — get a structural opinion if unsure
- Sewer scope on any house older than ~1980 ($150–300, saves $10k surprises)
- Full professional inspection — attend in person if at all possible
- Wood-destroying insect / termite inspection where regionally relevant
- Test every appliance, faucet, toilet, window and outlet during walkthrough
Location — you can fix the house, not the street
- Drive the street at 8pm on a Friday and 8am on a Monday
- Check crime maps (city data portal / CrimeMapping / SpotCrime)
- School ratings — even for rentals, they drive tenant quality and resale
- Flood-zone check on the FEMA flood map service centre
- Zoning: confirm current use is legal; check ADU / STR rules if part of your plan
- Nearby negatives: rail lines, industrial, planned developments, vacancies on the block
- Local landlord-tenant law: eviction timeline, rent control, licensing requirements
- Population and job trend for the metro — growing or shrinking?
Deal & closing
- Title search: liens, easements, encroachments
- Survey if boundaries are unclear or fences look wrong
- Compare 3+ lender quotes — rate AND points AND fees
- Lock the rate; confirm no prepayment penalty
- Confirm the insurance binder is effective at closing
- Walk through 24h before closing — condition unchanged, agreed repairs done
- Verify seller disclosures against inspection findings
- Budget reality check: do you still have 3–6 months of reserves AFTER closing?
Rent-ready & operations
- Re-key every lock the day you close
- Photograph and video every room for condition records
- Set up landlord insurance (not homeowner's); consider a $1M umbrella
- Register the rental licence if your city requires it
- Use a standardised lease reviewed for your state — not a random internet PDF
- Write tenant screening criteria BEFORE advertising (income 3x, credit, background, references)
- Separate bank account for property income and expenses
- Bookkeeping set up — even a spreadsheet; your accountant will thank you
- Maintenance vendor shortlist: plumber, electrician, handyman, HVAC
- CapEx reserve account funded from day one
When to walk away
- The numbers only work with zero vacancy or zero maintenance — walk
- Seller refuses inspection or rushes the timeline hard — walk
- Foundation or structural issues without engineer-priced bids in hand — walk or reprice
- You'd be out of reserves after closing — walk; the market will make more deals
- You're stretching because you're tired of looking — that's how bad deals happen
The checklist tells you what to inspect. The workbook
tells you whether the deal is worth inspecting. Cash flow, cap rate, cash-on-cash, DSCR,
30-year projection, BRRRR refi model and a stress-test grid — $19, every formula unlocked.
See the full toolkit →