Five red flags in a deal that looks great on paper

1. The rent is pro forma. A listing showing 'potential' rent rather than signed leases is a guess, not income.

2. Expenses are missing. No vacancy, no repairs, no capital reserves, no management. Add them back at realistic rates and see what's left.

3. Taxes are last year's. A sale can trigger a reassessment. Estimate taxes at the new price.

4. Insurance is assumed. Get a real quote early. In many markets it's rising fast.

5. The return depends on one thing. If a one-point rate change or one month of vacancy wipes out the cash flow, the deal is fragile. Run the downside before you fall in love.