Lesson 2 - Rent Rolls, Leases, & Liabilities

I once walked a duplex that the numbers looked okay for the rent roll…Then I used the market rents, Total ROI EXPLOADED. Both tenants were paying $650 when market was $1,100.
One more thing, the leases were Month-to-Month. That single insight added $10,800/yr in EXTRA cashflow once I owned the property and adjusted to market rents. If they had just signed a new lease, I would have walked away because they would be locked into the $650/month.

I will show you what I ask for every time I finish touring a property.

THE 4 DOCUMENTS THAT SAVE YOU

Here’s what you’re hunting for:

• Rent Roll + Payment History
  Red flag → late payments, big gaps
  Gold → tenants paying way below market = instant raise money

• Current Leases
  Gold → month-to-month or expiring soon = raise rents Day 1
  Watch → long-term leases locked at $600 when market is $1,200

• Utility Bills (12 months)
  Confirms who actually pays what (many sellers lie)
  Gold → tenants pay everything = higher NOI

• Tax Bill + Insurance
  Plug exact numbers into calculator (not estimates)
  Red flag → huge tax increase coming or uninsurable property

After your tour, send this exact email the same day (copy-paste it):

BONUS: Request Email

“Loved the tour, can you send me:

1. Rent roll + last 12 months payment history

2. Current leases (and note any month-to-month)

3. Last 12 months of all utility bills

4. Current property tax bill + insurance declaration page
   Thanks!”

My real duplex example

• Rent roll showed one tenant month-to-month, one lease ending next month

• Raised from $650 → $1,100 each side

• $10,800/yr in EXTRA cashflow

• +$30,000 instant equity

One student found a tenant paying $400 on a $1,050 unit → Instant win

The most important step most people skip

• Once you get these docs, immediately plug the real numbers into the Rental Calculator.

• Replace every estimate (taxes, insurance, utilities) with the actual bills.

• I’ve seen deals that looked like 60% ROI drop to 8% the second real taxes, insurance, and landlord-paid utilities hit the spreadsheet.

• If the numbers still work after the truth comes in - you’ve got a winner.

ACTION #2 - DO THIS THE SAME DAY YOU TOUR

• Send the Request Email: 4-documents above (takes 30 seconds)

• Plug the real numbers into your Rental Calculator → Deal Analyzer tab

One email can add $10k–$50k to your net worth or save you from an unwanted nightmare.

Next lesson: Follow Through - how to make sure you win.

See you in Lesson 3!