Start with rent roll (realistic), vacancy, OPEX (don’t forget reserves), cap rate vs. IRR (don’t overcomplicate early), and an inspection plan (roof, plumbing, electrical, foundation, moisture). Plug honest numbers; if the deal still pencils, great—then sharpen during diligence. If not, pass fast.
What the five numbers should tell you
The first pass is not meant to make a weak deal look clever. It should show whether the rent roll, vacancy assumption, expenses, debt payment, and repair exposure can survive normal San Diego ownership costs. For a duplex or triplex, the difference between a decent hold and a problem property is often hiding in small line items: insurance, water, trash, landscaping, turnover, pest work, deferred maintenance, and reserves.
After the quick math, the next step is property-specific diligence. Check whether the rents are actual or projected, whether any unit is under market for a reason, whether parking or laundry affects tenant demand, and whether the building has older systems that could erase the apparent return. A simple deal can still work, but the underwriting should show the risk clearly before a buyer spends time and money in escrow.
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