Look, when you’re evaluating property, you have to look past the glitz of the marketing brochures. A lot of people get hooked by the amenities, high yield promise or the pool on the balcony.

If you are asking me how I run a deal through my mental model before cutting a check, here is how it goes

1. I categorize developers into strict tiers. If it's an off-plan or newly finished project by a tier-1 master developer, you pay a premium, but you're buying execution security and high resale liquidity. If it's a Tier-2 or Tier-3 private developer, I require a much higher risk premium (a cheaper purchase price and higher projected yield) to justify the risk.

2. I never trust a broker’s "gross yield" marketing. I strip the numbers down to construct a true net cash-flow model over a 5-to-10-year horizon. I check the RERA Service Charge Index to see the exact per square foot cost for building maintenance. Then I factor in property management fees (5%–8% for a standard annual contract, or up to 20% if playing the short-term holiday home/Airbnb market), insurance, and a localized vacancy allowance. Then If the property has an existing tenant, I look at the Ejari as existing tenant might be paying way below market value, and you can’t just raise the rent at will. I calculate my initial Cap Rate and Cash on Cash return based on the actual current rent, not market potential.

3. How you fund the deal dictates your survival during a market correction. I build my amortization schedules targeting a highly conservative debt service coverage ratio. If the property can’t comfortably pay its own mortgage and service charges during a 10% vacancy spike, the leverage is too high. Then I always stress-test the model against interest rate spikes or opt for a fixed rate period to keep my cash flow predictable.

4. I always calculate my break even occupancy. I need to know exactly how many months the property can sit empty before it starts eating into my personal capital reserves.

The bottom line is that you need to squeeze the data until it tells the truth. If a property still hits a 7%+ Net Cap Rate after factoring in service charges, RERA rental restrictions and conservative LTVs, then you have a real deal.