Rental deal analysis checklist (with a free calculator)

If you only check one thing before you make an offer, check the cash flow under conservative assumptions.

This checklist is designed to be fast, repeatable, and “good enough” to filter deals.

Inputs you need (don’t overthink it)

• Purchase price
• Estimated rent (use comps, not the listing)
• Taxes + insurance
• Vacancy % (start with 5–8%)
• Repairs + capex + management (use conservative defaults if you’re unsure)
• Financing terms (rate, down payment, term)

Quick underwriting checklist

1. Sanity check rent
2. Estimate operating expenses
3. Compute NOI
4. Calculate DSCR (if you’ll use debt)
5. Check cash-on-cash
6. Stress test (rent -10%, expenses +10%, rate +1%)

Use a calculator to move faster

Parcel includes free tools so you can do this in minutes:

• Rental deal analyzer: /tools/deal-analyzer/
• Cap rate calculator: /tools/cap-rate/
• Cash-on-cash return: /tools/cash-on-cash/

What “good” looks like (rules of thumb)

Rules of thumb aren’t universal, but they help you filter:

• DSCR: many lenders want ≥ 1.20
• Cash-on-cash: target 8–12%+ depending on risk and market
• Cap rate: depends heavily on market class; compare to local comps and your opportunity cost