First Rental Property: Zillow + Underwriting Checklist
Complete first rental property checklist—Zillow search, Realy metrics, financing assumptions, due diligence, and offer readiness for new investors.
Your first rental property is the hardest because everything is new—financing, tenants, expenses, and the fear of buying a money pit. This checklist walks from Zillow search to offer-ready using Realy for the numbers.
Phase 1: Education (Before Zillow)
Understand the core metrics:
| Metric | Guide |
|---|---|
| NOI | How to calculate NOI |
| Cap rate | What is a good cap rate? |
| Cash-on-cash | CoC formula + examples |
| Cap vs CoC | Which matters more? |
Set your hurdle rates in writing:
- Minimum monthly cash flow: $_____
- Minimum cash-on-cash: _____%
- Minimum cap rate: _____%
Phase 2: Setup Tools
- Install Realy Chrome extension
- Create Realy.app account (sync assumptions)
- Get mortgage pre-approval (know your rate + max price)
- Read extension guide
Phase 3: Define Buy Box
- Target city/zip (start with one market)
- Price range (from pre-approval)
- Property type (SFR recommended for first deal)
- Beds/baths minimum for tenant demand
- Strategy: turnkey, light cosmetic, or house hack?
Phase 4: Zillow Search + Realy Screen
- Apply Zillow filters (price, type, beds)
- Click Open Realy Analyzer on search page
- Set Realy assumptions:
| Input | First-timer suggestion |
|---|---|
| Down payment | Match pre-approval (often 20%) |
| Interest rate | Actual pre-approval rate |
| Property tax | 2% or county rate |
| Insurance | Get quote or use $1,200+ placeholder |
| Vacancy | 1 month |
| Maintenance | 5% of rent |
| Management | 8% if not self-managing |
- Sort by cash-on-cash
- Shortlist 5 listings max
→ Full workflow: Find cash-flowing rentals
Phase 5: Underwrite Each Finalist
On each Zillow listing (Realy mini panel):
- Override rent with 3 comp averages (not just Rent Zestimate)
- Confirm property tax (assessed vs list in TX)
- Add real insurance quote when available
- Model rehab if needed (value-add guide)
- Verify CoC and monthly CF beat your hurdles
- Check red flags
- Open Detailed analysis; save/share report
Phase 6: Due Diligence (Under Contract)
- Home inspection (always)
- Appraisal
- Title search
- Rent comp packet for lender
- Flood / environmental if applicable
- HOA docs if condo/townhome (rental allowed?)
- Final Realy model with actual tax + insurance numbers
Phase 7: Property Management Prep
- PM selected (or self-manage plan documented)
- Lease template ready
- Security deposit account setup
- Landlord insurance quote
- Move-in inspection process
Phase 8: Close + Operate
- Final walkthrough
- Utilities transferred
- Tenant placement or lease assignment
- Track actual vs. projected in Realy (update assumptions with reality)
First Deal Reality Check
Your first property does not need to be perfect. It needs to:
- Cash flow under conservative assumptions
- Pass inspection without catastrophic surprises
- Fit a market you can learn (local or strong PM team)
- Teach you the full cycle
Avoid chasing the highest CoC on Zillow without understanding why it is high.
Start Your First Search
Open Zillow → Install Realy → Run this checklist on your top 5.
Related: House hacking first deal · Top 10 Dallas by CoC