Property can hedge inflation, generate income, and build equity—but only with discipline.

Choose your play

• Cash-flow hold: stable neighborhoods, modest appreciation, strong tenant demand.

• Value-add: renovate to lift rents/NOI; budget contingency ~10–15%.

• Short-term/medium-term rental: higher gross, higher management/regulatory risk.

• Commercial/office/retail: longer leases; sensitive to macro cycles.

Underwriting essentials

• Cap rate = NOI / Price. Stress-test with conservative rent & vacancy.

• Debt service coverage (DSCR): target ≥ 1.25×.

• True operating costs: insurance, taxes, management, maintenance, reserves, vacancy, utilities.

• Exit scenarios: refinance vs. sale; sensitivity if rates rise 100–200 bps.

Risk controls

• Permit checks, zoning, HOA rules.

• Insurance adequacy (flood, wind, liability).

• Diversify by market or asset class; keep cash reserves.

Management & retention

• Pro screening, clear house rules, documented move-in/out, preventive maintenance calendar.

• Value-add that matters: energy efficiency, storage, parking, laundry, pet amenities.

Metrics to track

Cash-on-cash, IRR, rent collection rate, turnover cost, days vacant, maintenance per unit per year.