Beginner Underwriting Checklist

7 line items your spreadsheet is probably missing.

1. Realistic Vacancy

Starting point: 8%. Higher for high-turnover profiles. Includes non-payment periods, not just between-tenant time.

2. CapEx (Separate From Maintenance)

Maintenance 5-10% of gross rent. CapEx 8-12% (roof, HVAC, water heater, flooring, windows). Track them separately.

3. Pay Yourself

Put 8-10% management on every deal — even when self-managing. If the deal only cash flows because you work for free, you own a job.

4. Real Rehab Number

Bid + change orders + hidden items + material drift. Apply a 15-20% buffer.

5. Turnover Cost

$1,500-$3,000 per make-ready. Factor in turnover frequency.

6. Insurance + Tax Reassessment

• Get a real insurance quote before inspection contingency ends
• Estimate post-sale taxes using assessor methodology (in many markets, sale triggers reassessment)

7. Refi-Side Costs And Timing

• Refi closing costs: origination, appraisal, title, escrow, prepaids, possible points
• 6-12 months seasoning carry belongs in your cash-left-in math

One-Page Printable

• Vacancy 8% start
• Maintenance 5-10%
• CapEx 8-12% (separate)
• Management 8-10%
• Rehab buffer 15-20%
• Turnover cost line
• Insurance real quote
• Tax reassessment estimate
• Refi closing costs
• Seasoning carry

Next Steps

Pair this with the BRRRR Buy Filter or grab The Practical BRRRR Starter Pack — drop your email below and I'll send it over.