How to Analyze Your First Rental in 15 Minutes

The biggest reason most new investors never buy is analysis paralysis. They open a spreadsheet, lose 90 minutes, and end up no closer to a decision. This is the framework I teach every coaching client — five questions that get you to a yes/no in under fifteen minutes.

1. The "back of napkin" filter

Before you open Excel, run the 1% rule as a sanity check. Monthly rent should be roughly 1% of the all-in purchase price. In most Canadian markets you won't hit that — but you'll see how far off you are, which tells you how much value-add you'll need to engineer.

1% rule isn't gospel — it's a filter. It rules out the obviously bad deals so you don't waste an hour modelling them.

2. Real numbers on the four big inputs

Once a deal passes the napkin test, plug in real numbers for:

• Mortgage payment — current 5-year fixed plus your amortization
• Property tax — pull from the listing or municipal assessment portal
• Insurance — call your broker; assume $100–$150/month for a single-family
• Vacancy + maintenance — budget 8% of rent combined, minimum

If the deal cashflows after these four, it earns more analysis time.

3. The capital event

For BRRRR, the question is: what does this property appraise at after the renovation? Pull three comps within 1km that match your post-reno specs. Take the lowest. That's your refinance ceiling.

If 80% of that ceiling is more than what you're putting in (purchase + renos + closing), you have a true BRRRR. If not, it's just a buy-and-hold with extra steps.

4. The exit strategy

Every deal needs at least two ways out. Mine:

1. Refinance and hold — primary plan
2. Sell on the open market — fallback if rates spike
3. Rent-to-own to a tenant-buyer — if the market softens

If only one of these works at today's numbers, you're betting on the market — not investing.

5. The gut check

Last question: would I be okay owning this property for ten years if everything went sideways? If the answer is no, walk. There's another deal next week.

That's it. Five questions, fifteen minutes, every time. The goal isn't to find the perfect deal — it's to stop thinking about the bad ones so you have time and energy for the real one when it shows up.

If you want the spreadsheet I use, it's pinned in the free Skool community.