A Simple Property Deal-Check Framework: 8 Steps to Smarter Investing
Define Your Strategy First
Is this deal supposed to generate cashflow, long-term growth, or both?
Don’t analyse blindly — measure against your personal goals.
Check the Local Market Drivers
Employment, regeneration projects, transport links, universities.
Demand indicators: rental yields, tenant demand, time on market.
Run the Numbers (Real, Not Glossy)
Gross yield vs net yield.
Factor in realistic voids, management fees, maintenance, insurance, utilities.
Always run best-case and worst-case scenarios.
Stress-Test the Deal
What happens if interest rates rise 1–2%?
What if you face a 2-month void?
If the deal still works, you’re in safe territory.
Assess the Property Condition
Does it need major works?
Cosmetic vs structural issues.
Refurb timeline and budget.
Understand the Exit Strategy
Can you refinance in 2–5 years to pull out capital?
Is resale demand strong in that area?
What’s the long-term plan if the market slows?
Final Filter: Gut Check + Expert Opinion
Would you feel comfortable explaining this deal to a trusted mentor?
Have you had someone (like us, or your network) double-check your assumptions?
