You’re staring at a property. The numbers look decent. Maybe even good.
But something’s nagging at you…
Is this ARV right? What if I’m missing something huge?
Sound familiar? You’re not alone. I see investors freeze up on underwriting more than any other part of this business. They get analysis paralysis. They second-guess every comp. They let deals slip away because they can’t pull the trigger.
Here’s the thing most gurus won’t tell you…
Underwriting Isn’t Rocket Science
I was coaching my group last week. We walked through a rural Wisconsin duplex together. Limited comps. Small town. The kind of deal that makes most investors run.
But here’s what we did:
- Started with Zillow (yeah, I know… but it’s a baseline)
- Widened the search to similar towns
- Cross-referenced with rent potential
- Used the 10-cap rule for quick math
That property? We nailed the ARV within $5K of what it should’ve been.
The key isn’t perfect data. It’s using what you have and moving forward.
The Real Problem Isn’t Your Numbers
Most investors who struggle with underwriting have a deeper issue. They don’t have a buy box.
I created mine this year after too many deals went sideways. Single-family homes. Two to four units. Wisconsin metro areas with 20K+ population. Strong investor activity.
Everything else? Automatic no.
This isn’t about being picky. It’s about being profitable. When you know exactly what you’re hunting for, underwriting becomes simple. You’re not trying to force a square peg into a round hole.
Rural Deals Aren’t Dead Money
One of my students was worried about rural properties. “Dan, I can’t find buyers.”
Here’s the truth… rural can work. But only if:
- There’s lakefront or unique value
- The property’s vacant
- The motivation is rock-solid
- Your price reflects the risk
That duplex we underwrote? Perfect example. Small town, but the seller was facing foreclosure. The pain was real. That’s when rural deals make sense.
Three Tools That’ll Change Your Game
First: Zillow for quick comps. Yeah, it’s not perfect. But it gives you a starting point faster than anything else.
Second: PropStream if you want to go deeper. Costs money, but worth it for serious volume.
Third: I’ve been working on a ChatGPT prompt that does property analysis. Feed it an address and condition details. It spits out ARV estimates, rehab costs, even buyer recommendations.
The best part? It told us the same $170K ARV we calculated manually. Technology meets street smarts.
The 90% Rule That Saves Deals
Here’s what most investors miss… underwriting doesn’t have to be perfect.
If you’re within 5-10% of your target number, ink it.
I’d rather see you get a property under contract and verify later than let analysis paralysis kill your momentum. You can always renegotiate after inspection. I do it all the time.
The key is having a legitimate reason. “We found structural issues we couldn’t see before.” “New comps came in lower than expected.”
As long as it’s honest, sellers understand.
When Deals Go Sideways
Sometimes you walk into a property and reality hits hard. Like my student’s deal in Plainfield. Thought it needed $35K in work. Turned out the floor was sinking eight inches.
That’s when you pivot fast.
Send photos to the seller. Show them what you’re seeing. Ask: “What do you want to do?”
Most times, they’ll take a lower number just to be done. The pain of reality outweighs the dream of that perfect price.
Stop Overthinking, Start Moving
The investors making money aren’t the ones with perfect underwriting systems. They’re the ones making offers.
Get 80% confident. Make the offer. Adjust as needed.
Your competition is stuck in spreadsheets while you’re building relationships and closing deals.
Ready to stop second-guessing every deal? I’ve got the tools and systems that’ll give you confidence in your numbers. Book a strategy call at danahlborn.com and let’s get you moving again.