The rent is only the beginning.

Ask what supports the proposed rent and whether it reflects the home’s current condition and intended use. If the property is occupied, request the relevant documents through the transaction process. Do not substitute a nearby asking rent for a verified income stream.

List financing, taxes, insurance, maintenance and reserves. Keep initial repairs separate from recurring costs so you can see both the cash needed at purchase and the ongoing commitment. Eddie’s rental experience provides context for the questions; obtain property-specific figures from the relevant sources.

Revisit the plan with a longer vacancy, a repair or a lower rent assumption. Ask what reserve would be needed and whether the property still fits your goals. This is a decision framework, not a return forecast. Use qualified tax, legal and lending professionals for advice specific to your situation.

Make a worksheet with a supported rent estimate, vacancy allowance, operating expenses, repair reserves and loan payments. Then compare your starting assumptions with a lower-rent scenario and a higher-expense scenario. Keep major renovation spending and cash needed to purchase separate so a positive monthly estimate does not hide the upfront commitment. These are planning scenarios, not a forecast or a promised return.