The RANGEFINDER Property Deal Screen

Most properties that cross an investor's desk should be declined quickly — not because they are bad, but because attention is finite and deep analysis is expensive. A disciplined initial screen separates the deals that deserve a week of work from the ones that deserve a polite pass.

This is that screen. Twelve categories, each with what to review, why it matters, the red flags, and the questions worth asking. It will not tell you whether to buy. It will tell you what to look at next.

1. Investment objective

Review. Your own criteria first: target return, hold period, risk tolerance, involvement level.

Why it matters. A property cannot be a good deal in the abstract — only relative to what you are trying to accomplish.

Red flags. You are stretching your criteria to fit the deal rather than testing the deal against your criteria.

Ask. If this property underperforms its projection by a third, does it still serve my objective?

2. Property type

Review. The asset class and your familiarity with it — industrial, retail, office, flex, mixed-use, specialty.

Why it matters. Different types carry different leasing cycles, capital needs, and management intensity.

Red flags. A type you do not understand, purchased because the projected return looked attractive.

Ask. Do I understand how tenants in this category make leasing decisions?

3. Location and submarket

Review. The specific submarket: access, visibility, surrounding uses, employment drivers, competing supply.

Why it matters. Markets are local. The metro headline may have nothing to do with this corridor.

Red flags. Relying on city-level statistics; nearby competing space sitting vacant.

Ask. Why would a tenant choose this location over the alternatives?

4. In-place income

Review. The rent roll: who pays what, under which leases, with what payment history.

Why it matters. In-place income is the only income that currently exists.

Red flags. Projected income presented without in-place figures; tenants in arrears; month-to-month occupancy presented as stable.

Ask. What does the property produce today, from signed leases, before any improvements?

5. Tenant and lease quality

Review. Tenant credit, lease terms, expiration schedule, renewal options, personal guarantees.

Why it matters. Income durability lives in the leases, not the building.

Red flags. A large share of income expiring soon; related-party tenants; leases with unusual termination rights.

Ask. What happens to cash flow if the largest tenant leaves at the first opportunity?

6. Occupancy

Review. Current and historical occupancy, for this property and its competitive set.

Why it matters. Persistent vacancy is a message about the property, the submarket, or the price of the space.

Red flags. Long-term vacant suites explained only by optimism; occupancy propped up by below-market rents.

Ask. How long has the vacant space been available, and what has it been offered at?

7. Operating expenses

Review. Actual expense history: taxes, insurance, utilities, maintenance, management, reserves.

Why it matters. Expenses determine how much of the income you keep, and they reprice at ownership changes.

Red flags. Expenses shown below market norms; no management fee; taxes at the seller's assessment.

Ask. What will insurance and property taxes cost me at the purchase price, not the seller's basis?

8. Capital needs

Review. Roof, structure, systems, pavement, elevators, code compliance — and what has been deferred.

Why it matters. Deferred maintenance is a price reduction waiting to be negotiated, or a surprise waiting to be owned.

Red flags. No capital reserve in the projections; systems past their expected life.

Ask. What will this property require in capital spending over my hold period?

9. Purchase price and basis

Review. The price relative to in-place income, replacement cost, and comparable sales.

Why it matters. Basis is the one variable you fully control at the moment of purchase.

Red flags. Pricing justified entirely by projected rather than in-place performance.

Ask. If none of the upside materializes, am I still comfortable owning it at this basis?

10. Financing assumptions

Review. Available loan terms, required equity, reserves, covenants, and the maturity structure.

Why it matters. Financing defines both your cash flow and your obligations at maturity.

Red flags. A deal that only works with maximum leverage at an assumed rate.

Ask. Does the deal survive a rate a point higher and proceeds a notch lower?

11. Downside scenarios

Review. What happens if vacancy rises, rents fall, a major tenant leaves, or the exit takes longer.

Why it matters. Returns are made on the upside but survived on the downside.

Red flags. No stress case has been run; the answer to every "what if" is "that won't happen."

Ask. What is the plausible worst case, and can I carry it?

12. Exit strategy

Review. Who buys this property from you, at what pricing logic, in what market conditions.

Why it matters. Every projection of return ends in a sale or a refinance. Both are assumptions.

Red flags. An exit that depends on a specific cap rate or a buyer profile that does not currently exist.

Ask. If I had to sell in a soft market, what would this property be worth and to whom?

The interactive worksheet

The worksheet below walks all twelve categories with space for your notes. Your entries stay in this browser — nothing is transmitted or stored on our servers. Print it for a clean copy to mark up during a property tour.

The RANGEFINDER Perspective

A useful deal screen does not tell you whether to buy. It tells you what deserves closer attention — and it keeps you from spending your best hours on the wrong properties.

Screening a property and want a second perspective? Review an Opportunity With RANGEFINDER.