Deal Kill / Deal Pass Tool
Fast verdict for Gilroy-style buy-and-hold deals. Enter basics → get a clear next step.
Inputs
This tool is conservative on purpose. It’s meant to stop “fake deals” early.
Verdict
How to Use the Deal Kill / Deal Pass Too
How to Use the Deal Kill / Deal Pass Tool
Enter the basic numbers for the property you are analyzing. The tool estimates cash flow, expenses, and risk metrics to give you a fast verdict.
- Input the purchase price, expected rent, and financing terms.
- Adjust vacancy and management assumptions if needed.
- Click Get Verdict to see estimated cash flow and deal strength.
- Use the result as a screening step, not a final approval.
This tool is intentionally conservative. If a deal passes here, it deserves deeper analysis.
What Makes a Deal a Pass in Gilroy?
Gilroy deals fail most often for one reason. Rent does not support today’s prices and interest rates.
Common pass triggers
- Negative monthly cash flow
- DSCR below lender comfort levels
- Overreliance on appreciation
- Thin margins that break with small expense changes
A pass does not mean the property is bad. It means the numbers do not work right now.
Common Mistakes New Investors Miss
Many first time investors focus on the wrong signals.
The most common mistakes
- Ignoring vacancy and management costs
- Assuming rent growth will save the deal
- Underestimating insurance and property taxes
- Confusing appreciation with income
This tool exists to stop emotional decisions early.
Why Cash Flow Matters More Than Appreciation Sometimes
Appreciation is unpredictable. Cash flow is measurable.
Positive cash flow helps you
- Buy time during market slowdowns
- Reduce stress during vacancies
- Protect against rising expenses
Appreciation is upside. Cash flow is survival.
Strong investors prioritize both, but never ignore cash flow.
Frequently Asked Questions
What is a deal killer in real estate?
A deal killer is any factor that prevents a property from producing sustainable returns, such as persistent negative cash flow or excessive risk.
What DSCR is considered safe?
Most lenders prefer a DSCR of 1.20 or higher, though standards vary by loan type and market.
Can negative cash flow still be a good deal?
Sometimes, but only when backed by strong fundamentals and sufficient reserves. This tool flags those cases early.
