How to Analyze a Rental Property Deal in Canada: A Newcomer's Guide

Not financial advice. For educational purposes only. Consult a qualified financial professional before making investment decisions.

If you are new to Canada and exploring real estate investing, one of the first things you need to understand is that not all rental properties are analyzed the same way. In Canada -- and across North America -- there are two broad categories of rental investments, and each one has its own rules for financing, valuation, and deal analysis.

Getting this distinction right from day one will save you from running the wrong numbers, applying for the wrong mortgage, or misunderstanding how a property is valued.

This guide will walk you through both categories, explain how the financing and valuation differ, and give you a practical framework for analyzing deals in each. We will also cover the key financial ratios investors use, work through real examples with actual numbers, and touch on the tax and legal considerations that newcomers need to be aware of.

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The Two Categories of Rental Property in Canada

Residential Rental Investments (Four Units or Fewer)

In Canada, any property with four units or fewer is classified as a residential investment. This includes:

• Single-family homes rented to a tenant
• Duplexes (two units)
• Triplexes (three units)
• Fourplexes (four units)

These properties fall under residential mortgage rules. This has major implications for how you finance them, how they are valued, and how you analyze deals.

Commercial Residential Investments (Five Units or More)

Any property with five or more units is classified as a commercial residential investment. This includes:

• Small apartment buildings (5 to 20 units)
• Mid-size apartment buildings (20 to 100 units)
• Large apartment complexes (100+ units)

These properties fall under commercial mortgage rules, which means different lending criteria, different valuation methods, and different financial metrics.

Understanding which category your target property falls into is the first step in any deal analysis. Let us start with residential.

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Part 1: Residential Rental Investments (Four Units or Fewer)

How Residential Mortgages Work

When you buy a residential rental property in Canada, the mortgage process is similar to buying a home you would live in -- but with some key differences.

Valuation is based on comparables, not income. This is the single most important thing to understand about residential rentals. The value of a duplex, triplex, or fourplex is determined by what similar properties in the area have recently sold for -- not by how much rental income the building generates.

This means:

• A duplex generating $4,000/month in rent and an identical duplex generating $3,000/month in rent will be valued the same if comparable sales support the same price.
• You cannot increase the value of a residential rental simply by raising rents (unlike commercial, as we will see later).
• The appraisal will look at recent sales of similar properties in the neighborhood, adjusting for size, condition, and features.

Down payment requirements for rental properties:

• Owner-occupied (1-4 units): If you live in one of the units, you can put as little as 5% down for a single unit (with CMHC mortgage insurance), or 5-10% for a duplex to fourplex. Living in the property is one of the most powerful strategies for newcomers because it unlocks lower down payments.
• Non-owner-occupied: If you are buying a rental property you will not live in, most lenders require a minimum 20% down payment. CMHC insurance is not available for non-owner-occupied investment properties.

Qualifying for the mortgage:

Lenders will look at your personal income, credit score, debt ratios, and employment history -- similar to a regular home purchase. They will also consider a portion of the expected rental income (typically 50-80% of market rent) to help you qualify, but your personal finances are the primary driver.

The mortgage stress test applies: you must qualify at the higher of your contract rate plus 2%, or the Bank of Canada's qualifying rate (currently 5.25% as of early 2026).

How to Run Cash Flow Analysis on a Residential Rental

Cash flow analysis is the core of residential rental investing. The question is simple: after collecting rent and paying all expenses, how much money is left in your pocket each month?

Here is the formula:

Monthly Cash Flow = Gross Rental Income - All Operating Expenses - Mortgage Payment

The key is making sure you account for all the expenses. Many new investors underestimate costs and end up with negative cash flow they did not expect.

Revenue

• Gross monthly rent: The total rent collected from all units. Use realistic market rents, not what the seller claims is achievable. Check Rentals.ca, Kijiji, and Facebook Marketplace for comparable units in the area.
• Other income: Laundry, parking, storage -- if applicable.

Operating Expenses (The Full List)

Here is every expense you need to account for:

1. Property taxes: Check the municipality's website for the current assessed value and mill rate. Property taxes on rental properties are often higher than owner-occupied rates in some municipalities.

2. Insurance: Landlord insurance (not regular home insurance). Expect $150-$300/month depending on the property size and location. Get actual quotes -- do not guess.

3. Utilities (if landlord-paid): Heat, hydro, water. In many older duplexes and triplexes, utilities are not separately metered, meaning the landlord pays. This can be a significant cost, especially in winter. Budget $200-$500/month per unit for older, landlord-paid-utility buildings.

4. Maintenance and repairs: The industry standard is to budget 5-10% of gross rent for ongoing maintenance. Older buildings will be at the higher end. This covers things like plumbing repairs, appliance replacements, painting between tenants, and general upkeep.

5. Capital expenditures (CapEx) reserve: Separate from maintenance, this is a reserve for major items: roof replacement, furnace, windows, foundation work. Budget 5-10% of gross rent. A new roof might cost $10,000-$25,000 and lasts 20-25 years. You need to be saving for these costs continuously.

6. Vacancy allowance: No property is rented 100% of the time. Budget 3-5% of gross rent for vacancy (roughly 2-4 weeks per year of lost rent between tenants). In high-demand urban areas, vacancy may be lower; in smaller markets, budget higher.

7. Property management (if applicable): If you hire a property manager, expect to pay 8-12% of gross rent. Even if you self-manage, many investors still factor in a 5% management cost to account for the time value of their labor.

8. Condo fees (if applicable): If the rental is a condo unit, condo fees can be $300-$800/month or more. These eat directly into your cash flow.

9. Legal and accounting: Budget $500-$1,000/year for tax preparation, lease reviews, and occasional legal consultations.

10. Landscaping and snow removal: If you are responsible (common in houses and small multiplexes), budget $100-$300/month depending on the property and climate.

The Mortgage Payment

This is your principal and interest payment (P&I). Use an online mortgage calculator or the formula:

• Purchase price minus your down payment = mortgage amount
• Apply the current mortgage rate (for investment properties, expect rates 0.10-0.25% higher than owner-occupied rates)
• Amortize over 25 years (standard for residential) or 30 years if available

The cash flow formula in practice:

Gross Monthly Rent
- Property Taxes (monthly)
- Insurance
- Utilities (if landlord-paid)
- Maintenance (5-10% of rent)
- CapEx Reserve (5-10% of rent)
- Vacancy (3-5% of rent)
- Property Management (0-12% of rent)
- Other Expenses
= Net Operating Income (NOI)
- Mortgage Payment (P&I)
= Monthly Cash Flow

If the result is positive, you have positive cash flow. If negative, the property costs you money each month -- which can be acceptable in high-appreciation markets if you are building equity, but it is a risk.

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Part 2: Commercial Residential Investments (Five Units or More)

How Commercial Mortgages Work

Once you cross the five-unit threshold, everything changes. Commercial residential properties are financed under commercial mortgage rules, and the most fundamental difference is this:

Valuation is based on income, not comparables. The value of a commercial residential property is derived from how much income it generates. This is the opposite of residential, where comparable sales determine value.

This means:

• If you increase the Net Operating Income (NOI) of a building -- by raising rents, reducing expenses, or both -- you directly increase the value of the property.
• Two identical buildings side by side can have very different values if one is better managed and generates more income.
• This creates opportunities for value-add investors who can find underperforming buildings and improve them.

Commercial mortgage terms:

• Down payment: Typically 20-35% for commercial residential properties. Some lenders like CMHC's MLI Select program offer insured financing with as little as 5-15% down for qualifying multi-unit residential buildings, but these come with affordability and energy-efficiency requirements.
• Amortization: Usually 25 years, though some lenders offer up to 30 or even 40 years for CMHC-insured commercial mortgages.
• Interest rates: Commercial rates are generally higher than residential. Expect 1-2% above residential rates, depending on the lender, the property, and the borrower's experience.
• Personal qualification matters less: While lenders still look at the borrower's net worth and experience, the primary underwriting criterion is the property's ability to generate income and service the debt. This is a major difference from residential lending.

Net Operating Income (NOI): The Foundation of Commercial Valuation

NOI is the single most important number in commercial real estate. It represents the income a property generates after all operating expenses but before debt service (mortgage payments).

NOI = Gross Rental Income - Operating Expenses

Operating expenses include everything we listed in the residential section (property taxes, insurance, maintenance, management, vacancy, etc.) but do NOT include:

• Mortgage payments (principal and interest)
• Income taxes
• Depreciation/amortization

NOI is a measure of the property's operating performance independent of how it is financed. This is important because different buyers will finance the same building differently, but the NOI should be the same for everyone.

Example NOI calculation for a 10-unit apartment building:

Gross Potential Rent (10 units x $1,500/month x 12)    $180,000
- Vacancy Allowance (5%)                                - $9,000
= Effective Gross Income                                $171,000

Operating Expenses:
  Property Taxes                                        - $18,000
  Insurance                                             - $6,000
  Utilities (common areas + landlord-paid)               - $12,000
  Maintenance & Repairs                                  - $10,000
  Property Management (10%)                              - $17,100
  CapEx Reserve                                          - $9,000
  Administrative / Legal / Accounting                    - $3,000
  Total Operating Expenses                              - $75,100

Net Operating Income (NOI)                              $95,900

Cap Rates: How Commercial Properties Are Valued

The capitalization rate (cap rate) is the tool that connects NOI to property value. It represents the expected rate of return on a property if you bought it with all cash (no mortgage).

Cap Rate = NOI / Property Value

Or, rearranged to find value:

Property Value = NOI / Cap Rate

Cap rates are determined by the market. They vary by:

• Location: Major cities like Toronto and Vancouver have low cap rates (3-5%) because demand is high and perceived risk is low. Smaller cities and rural areas have higher cap rates (6-9%).
• Property condition: Well-maintained buildings with stable tenants have lower cap rates. Buildings needing work have higher cap rates (reflecting the added risk).
• Asset class: Purpose-built apartment buildings tend to have lower cap rates than converted buildings or mixed-use properties.

Using cap rate and NOI to determine building value:

Using our 10-unit example above with an NOI of $95,900:

• At a 5% cap rate: Value = $95,900 / 0.05 = $1,918,000
• At a 6% cap rate: Value = $95,900 / 0.06 = $1,598,333
• At a 7% cap rate: Value = $95,900 / 0.07 = $1,370,000

Notice how the cap rate dramatically affects value. A one-point difference in cap rate can mean hundreds of thousands of dollars.

This is why commercial investing is so powerful: If you can increase the NOI of a building by $10,000 per year in a 5% cap rate market, you have added $200,000 in value ($10,000 / 0.05). That $10,000 might come from adding $83/month to each of your 10 units -- a modest rent increase that translates to significant equity gain.

In residential investing (four units or fewer), raising rents does not directly change the property value because it is based on comparables. In commercial, it does. This is the fundamental difference.

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Part 3: Key Financial Ratios for Rental Property Analysis

Now that you understand the basic distinction between residential and commercial, let us look at the financial ratios investors use to evaluate deals. Some apply to residential, some to commercial, and some to both.

The 1% Rule

What it is: A quick screening tool that says the monthly gross rent should be at least 1% of the purchase price.

Formula: Monthly Rent >= 1% of Purchase Price

Example: A property purchased for $400,000 should generate at least $4,000/month in gross rent.

Applies to: Both residential and commercial. It is used as a quick filter, not a definitive analysis.

Limitations: In expensive Canadian markets like Toronto and Vancouver, very few properties meet the 1% rule. It is more achievable in smaller cities like Windsor, Sudbury, Moncton, or Winnipeg. Failing the 1% rule does not automatically make a deal bad -- it just means you need to look more carefully at the numbers.

Cash-on-Cash Return

What it is: The annual return on the actual cash you invested (your down payment plus closing costs).

Formula: Cash-on-Cash = Annual Cash Flow / Total Cash Invested x 100

Example: You invest $100,000 (down payment + closing costs) and the property generates $6,000/year in cash flow after all expenses and mortgage payments. Your cash-on-cash return is 6%.

Applies to: Both residential and commercial. This is one of the most useful metrics because it tells you what your money is actually earning. Compare it to what you could earn in a GIC, the stock market, or other investments.

Target: Most investors look for a minimum 5-8% cash-on-cash return for residential and 7-12% for commercial (higher because of the added complexity and risk).

Cap Rate

What it is: The unlevered return -- what you would earn if you bought the property with all cash.

Formula: Cap Rate = NOI / Purchase Price x 100

Applies primarily to: Commercial properties. While you can calculate a cap rate on a residential fourplex, the number is less meaningful because residential values are based on comparables, not income. On the commercial side, cap rate is the primary valuation tool.

Gross Rent Multiplier (GRM)

What it is: A quick valuation metric that shows how many years of gross rent it takes to equal the purchase price.

Formula: GRM = Purchase Price / Annual Gross Rent

Example: A building costs $1,000,000 and generates $120,000/year in gross rent. GRM = 8.33.

Applies primarily to: Commercial properties. A lower GRM suggests a better deal (fewer years to "pay back" the purchase price through rent). GRM is a rough screening tool -- it does not account for expenses, so it should be used alongside NOI and cap rate, not instead of them.

Debt Service Coverage Ratio (DSCR)

What it is: The ratio of NOI to annual mortgage payments. It measures whether the property generates enough income to cover its debt obligations.

Formula: DSCR = NOI / Annual Debt Service (Mortgage Payments)

Example: NOI is $95,900 and annual mortgage payments are $72,000. DSCR = 1.33.

Applies primarily to: Commercial properties. Lenders typically require a minimum DSCR of 1.20-1.30 for commercial mortgages. A DSCR below 1.0 means the property cannot cover its mortgage from operating income -- a red flag.

Quick Reference: Which Ratios Apply Where

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Part 4: Worked Examples with Real Numbers

Example 1: Residential Duplex in Hamilton, Ontario

The property:

• Duplex (2 units), purchase price: $550,000
• Unit 1: 2-bedroom, rents for $1,800/month
• Unit 2: 2-bedroom, rents for $1,700/month
• You live in Unit 2 (owner-occupied, 10% down payment)

Financing:

• Down payment: $55,000 (10%)
• Mortgage: $495,000
• Mortgage rate: 4.5% (with CMHC insurance)
• Amortization: 25 years
• Monthly mortgage payment (P&I): ~$2,733

CMHC insurance premium: 3.10% of mortgage = $15,345, added to mortgage balance. New mortgage: $510,345. Revised monthly payment: ~$2,818.

Monthly cash flow analysis (you live in one unit, rent the other):

Gross Rental Income (Unit 1 only)                $1,800
- Property Taxes ($5,500/yr / 12)                 - $458
- Insurance ($200/month)                           - $200
- Maintenance (10% of rent)                        - $180
- CapEx Reserve (5% of rent)                       - $90
- Vacancy (4% of rent)                             - $72
= Effective Income After Expenses                  $800
- Mortgage Payment                                 - $2,818
= Monthly Cash Flow                               - $2,018

Wait -- that is negative $2,018? Yes, but remember: you are living in one of the units. If you were renting an apartment elsewhere, you might be paying $1,700-$2,000/month. So the effective housing cost analysis looks like this:

Your mortgage payment:                             $2,818
- Rental income from Unit 1 after expenses:        - $800
= Your effective housing cost:                     $2,018/month

Compare that to renting a $1,800/month apartment: you are paying only $218/month more, but you are building equity, getting mortgage paydown from a tenant, and gaining potential appreciation. This is the house-hacking strategy, and it is one of the most powerful tools for newcomers starting out.

Key metrics:

• 1% Rule: $3,500/month rent / $550,000 = 0.64%. Does not pass, but this is typical for Ontario.
• Cash-on-Cash (if you rented both units): Negative in year one after all expenses. This is common for owner-occupied duplexes in expensive markets. The return comes from equity buildup and appreciation.

Example 2: Commercial 10-Unit Apartment Building in Moncton, New Brunswick

The property:

• 10-unit apartment building, purchase price: $1,200,000
• Average rent per unit: $1,300/month
• All utilities separately metered (tenants pay their own)
• Purchased in a corporate name (numbered corporation)

Financing:

• Down payment: $300,000 (25%)
• Commercial mortgage: $900,000
• Interest rate: 5.75%
• Amortization: 25 years
• Monthly mortgage payment (P&I): ~$5,666
• Annual debt service: $67,992

Annual cash flow analysis:

Gross Potential Rent (10 x $1,300 x 12)           $156,000
- Vacancy Allowance (5%)                            - $7,800
= Effective Gross Income                           $148,200

Operating Expenses:
  Property Taxes                                   - $14,000
  Insurance                                        - $5,400
  Common Area Utilities                            - $4,800
  Maintenance & Repairs (7% of EGI)                - $10,374
  Property Management (10% of EGI)                 - $14,820
  CapEx Reserve (5% of EGI)                        - $7,410
  Admin / Legal / Accounting                       - $2,500
  Snow Removal / Landscaping                       - $3,600
Total Operating Expenses                           - $62,904

Net Operating Income (NOI)                         $85,296
- Annual Debt Service                              - $67,992
= Annual Cash Flow (Before Tax)                    $17,304
= Monthly Cash Flow                                $1,442

Key metrics:

• Cap Rate: $85,296 / $1,200,000 = 7.1%. This is a solid cap rate for a multi-unit building in a secondary market.
• Cash-on-Cash Return: $17,304 / $300,000 = 5.8%. Reasonable for a first commercial deal.
• DSCR: $85,296 / $67,992 = 1.25. Meets the typical lender minimum of 1.20.
• 1% Rule: $13,000/month / $1,200,000 = 1.08%. Passes.
• GRM: $1,200,000 / $156,000 = 7.7. Reasonable for the market.

The value-add play: If you renovated units and increased average rents by $150/month to $1,450:

• New gross rent: $174,000/year
• New NOI (assuming similar expense ratios): ~$97,000
• New value at 7.1% cap rate: $97,000 / 0.071 = $1,366,197

By increasing rents $150/unit, you have added approximately $166,000 in equity -- more than half your original down payment. This is the power of commercial real estate: you directly control the value through operational improvements.

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Part 5: Additional Considerations for Newcomers

Provincial Landlord and Tenant Laws

Each province in Canada has its own residential tenancy legislation. Some key variations:

• Ontario (Residential Tenancies Act): Rent increases are capped annually by a guideline set by the province (2.5% for 2025). Units first occupied after November 15, 2018 are exempt from rent control. You cannot evict a tenant simply because you want higher rent.
• British Columbia (Residential Tenancy Act): Strict rent control applies to most units. Maximum annual increase is set by the province.
• Alberta (Residential Tenancies Act): No rent control. Landlords can raise rents with proper notice, but only once per year.
• Quebec (Civil Code + Regie du logement): Strong tenant protections. Rent increases must be justified, and tenants can contest them.
• New Brunswick, Nova Scotia, Manitoba: Each has its own rules. Some have temporary rent caps; others do not.

For commercial (5+ units): Most provincial residential tenancy acts still apply to individual tenants within commercial buildings. The "commercial" classification affects financing and valuation, not tenant rights.

Key advice: Before buying in any province, read the relevant tenancy act or consult a lawyer. Landlord-tenant law directly affects your ability to raise rents, evict problem tenants, and manage your investment.

GST/HST and Rental Income Tax Treatment

Residential rentals (long-term): Long-term residential rent (one month or longer) is exempt from GST/HST. You do not charge GST/HST to your tenants, but you also cannot claim input tax credits on expenses related to the rental.

Short-term rentals (less than 30 days): If you operate a short-term rental (like Airbnb), GST/HST applies once your revenue exceeds $30,000 in four consecutive quarters. You must register, charge GST/HST, and file returns.

Commercial leases: If any part of a commercial building has commercial tenants (retail on the ground floor, for example), GST/HST rules for commercial leasing apply to those units.

Personal Name vs. Corporation

The structure you choose for holding your rental property has significant tax implications.

Residential investments (four units or fewer) are generally held in the investor's personal name. Why:

• Residential mortgage rates are lower for individuals than for corporations.
• Principal residence exemption may apply to the unit you live in (for owner-occupied multi-unit properties).
• Rental income is taxed at your personal marginal tax rate, but you can deduct all related expenses (mortgage interest, property taxes, maintenance, depreciation/CCA, etc.).
• Capital gains on sale receive the 50% capital gains inclusion rate (for the first $250,000 in gains as of 2024 rules).

Commercial investments (five units or more) are generally held within a corporation (often a numbered corporation like 12345678 Ontario Inc.). Why:

• Commercial lenders often prefer or require corporate borrowers.
• The small business tax rate (approximately 12-13% combined federal-provincial, varying by province) is significantly lower than personal marginal rates, allowing you to retain more income for reinvestment.
• Liability protection: a corporation limits your personal exposure.
• Multiple investors can hold shares in the corporation.

Active vs. passive income within a corporation:

This is a nuanced area. Generally:

• Rental income in a corporation is considered passive income (also called "aggregate investment income") and is taxed at a higher rate than active business income -- roughly 50% at the combined federal-provincial level. However, a portion is refundable when dividends are paid out.
• If the corporation provides significant services to tenants (maintenance staff, cleaning, concierge, furnished units), the CRA may classify the rental operation as an active business, which qualifies for the lower small business tax rate.
• This distinction matters significantly for tax planning. Many commercial real estate investors structure their holdings with separate property-holding corporations and management companies to optimize the active vs. passive classification.

Key advice: The tax treatment of rental income in Canada is complex and depends on your specific situation. Consult a tax professional who specializes in real estate before making structural decisions.

Common Mistakes Newcomers Make

1. Not accounting for all expenses. The most common mistake is calculating cash flow using only rent minus mortgage. You must include property taxes, insurance, maintenance, vacancy, CapEx, and management. Missing even one or two line items can turn a seemingly profitable deal into a money-loser.

2. Using the seller's numbers. Sellers and their agents have every incentive to make the property look as profitable as possible. Always verify rents independently (check Rentals.ca, Kijiji, CMHC Rental Market Survey), get your own insurance quotes, and verify property tax amounts with the municipality.

3. Ignoring vacancy. New investors often assume 100% occupancy. Even in tight rental markets, you will have turnover. Budget for it.

4. Underestimating maintenance on older buildings. That 1960s triplex might look like a bargain, but the roof, plumbing, electrical, and windows could all need replacement within the next 5-10 years. Get a thorough home inspection and price out the deferred maintenance before you buy.

5. Not understanding the local rental market. A $400,000 property generating $4,000/month in rent sounds great -- until you learn that the market rents are actually $3,200/month and the current tenants are paying above-market rates. When they leave, your income drops.

6. Confusing residential and commercial valuation. Applying a cap rate to a fourplex to determine its "value" is a common error. Residential values are based on comparable sales, not income. This mistake leads to overpaying for properties that look good on an income basis but are overpriced relative to the market.

7. Skipping legal due diligence. Not reviewing existing leases, not checking for outstanding work orders from the municipality, not verifying zoning -- these can all lead to expensive surprises.

Frequently Asked Questions

Q: Can I invest in rental property as a newcomer or permanent resident? A: Yes. There are no citizenship requirements for owning rental property in Canada, though the federal foreign buyer ban (until 2027) restricts non-residents and temporary residents from purchasing residential property in most cases. Permanent residents are exempt from this ban.

Q: How much do I need to get started? A: For an owner-occupied duplex, as little as 5-10% down plus closing costs (typically 1.5-4% of purchase price). For a non-owner-occupied residential rental, 20% down minimum. For commercial, 25-35% down. In practical terms, $50,000-$100,000 can get you into an owner-occupied multi-unit in many Canadian markets outside Toronto and Vancouver.

Q: Should I self-manage or hire a property manager? A: For your first property, self-managing is a good way to learn the business. As you grow beyond 2-3 properties or if the properties are not local, professional management (8-12% of gross rent) becomes worthwhile.

Q: Is real estate investing better than investing in the stock market? A: They are different asset classes with different risk-return profiles. Real estate offers leverage (you can control a $500,000 asset with $100,000), tax advantages (depreciation, mortgage interest deduction), and cash flow. Stocks offer liquidity, diversification, and simplicity. Many investors hold both. There is no universal "better" -- it depends on your goals, risk tolerance, and how much time you want to invest.

Q: What about house flipping? A: House flipping (buying, renovating, and reselling) is a separate strategy from rental investing. As of 2023, profits from flipping properties held less than 12 months are taxed as business income (100% taxable) rather than capital gains. This guide focuses on buy-and-hold rental investing.

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Summary

Analyzing a rental property deal in Canada comes down to understanding which category it falls into and applying the right framework:

Residential (four units or fewer):

• Valued by comparables, not income
• Financed under residential mortgage rules
• Focus on cash flow analysis with all expenses accounted for
• Key metrics: cash-on-cash return, 1% rule
• Generally held in personal name

Commercial (five units or more):

• Valued by income (NOI and cap rate)
• Financed under commercial mortgage rules
• NOI is the foundation of everything
• Key metrics: cap rate, NOI, DSCR, GRM, cash-on-cash return
• Generally held in a corporation

The most important takeaway: Run the numbers. Every time. Use the full expense list. Verify everything independently. Do not rely on gut feeling, the seller's pro forma, or what someone on YouTube told you. A good deal is one where the math works after conservative assumptions -- and you have verified every input.

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Written by Raunaq Singh, Founder of Maple Syrup Money.

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