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