Watch Me Break Down a Real Investment Property

Welcome back to The Paul Morris Podcast, brought to you by Entrepreneur Media. In this episode, I walk you through a real $850,000 duplex I analyzed this week and break down exactly how I underwrite deals in today’s market. At a 5 cap with mortgage rates around 6%, most investors would immediately pass. But when you look closer at below-market rents, long-term leverage, and the ability to add two ADUs, the numbers start telling a different story.

I’ll show you how cap rates and interest rates actually interact, when leverage helps you and when it hurts you, and why I’m willing to consider a deal that isn’t a “screaming steal.” This is a transparent look at how I evaluate risk, think conservatively about debt, and search for built-in upside in expensive markets like Los Angeles. If you want to understand how to analyze real estate beyond the hype and make disciplined, long-term decisions, this episode is for you.

*Connect with Paul*Instagram: https://www.instagram.com/paulmarkmorris/TikTok: https://www.tiktok.com/@itspaulmarkmorrisYouTube: https://www.youtube.com/@paulmorrispodcastFacebook: https://www.facebook.com/paulmarkmorris

*Presented by Entrepreneur Media & Money News Network*Entrepreneur Media: https://www.entrepreneur.com/podcastsMoney News Network: https://www.moneynewsnetwork.com

Timestamps00:00 Disclaimer and Welcome

00:13 The Duplex Deal Setup

00:43 What a Five Cap Means

01:46 Cap Rates in LA Reality

02:07 5 Cap vs 6 Percent Debt

03:10 When Leverage Helps Returns

04:58 How Higher Rates Kill Yield

05:47 Why Consider This Duplex

06:25 Upside One Below Market Rents

06:44 Rent Control and Rent Bumps

07:46 Upside Two Build Two ADUs

08:37 ADU Math Doubling Income

10:19 Financing Strategy 30 Year Safety

11:52 Underwriting Rules and Upside Review

13:05 Buy and Hold vs Fund Approach

14:02 Wrap Up and Viewer Questions

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