A property can be attractive, well-located, in good condition and generating rental income, yet still be the wrong investment.
There is an important difference between identifying a good property and identifying a good investment. That difference often lies in the assumptions supporting the numbers, rather than the property itself.
When the numbers don’t tell the whole story
Consider a buy-to-let property advertised at £200,000, with expected rental income of £1,200 per month. On the surface, that’s £14,400 annually and a gross rental yield of 7.2%.
For some investors, those figures might be enough to justify further consideration. However, gross yield tells us very little about the investment’s actual financial performance.
Once maintenance, insurance, management fees, compliance costs, potential void periods and financing are considered, the picture can change considerably. The investment also needs to withstand less favourable circumstances, such as increased borrowing costs, unexpected repairs or weaker rental demand.
Then there is the question of how the investor eventually recovers their capital. If the strategy relies on refinancing or selling within a particular timeframe, how realistic are those assumptions?
None of these considerations automatically makes the property a poor investment, but they can fundamentally change whether the opportunity is financially viable.
The property hasn’t changed. Our understanding of the investment has.
Why investment analysis needs to go further
Property opportunities are frequently presented through their most attractive characteristics: projected rental income, headline yield, potential capital appreciation or opportunities to add value.
These are relevant considerations, but projections are only as reliable as the assumptions behind them.
A strong rental yield doesn’t necessarily translate into healthy cashflow, just as a profitable investment on paper may require considerably more operational involvement than anticipated.
This is why I believe proper investment analysis should do more than confirm whether the numbers add up. It should challenge whether those numbers are realistic in the first place.
My approach is built around four interconnected considerations: Cashflow, Operations, Risk and Exit, which form the foundation of my CORE Framework™.
Together, they encourage investors to examine not only the potential return, but also the practical demands, financial exposure and longer-term viability of an opportunity.
The objective isn’t to make investment decisions unnecessarily complicated. It’s to ensure that confidence is supported by evidence rather than optimism.
A new chapter for this newsletter
For the past 63 editions, I’ve shared perspectives on property investment, technology, business and the wider industry through The PropTech Edit.
As my work has evolved, I’ve become increasingly focused on the quality of the decisions Investors make before committing capital. That includes understanding the assumptions behind projected returns, recognising risks that aren’t immediately obvious and knowing when an opportunity deserves further consideration.
With that in mind, The PropTech Edit is becoming The CORE Property Edit.
Beyond the numbers. Behind the decisions.
The newsletter will continue exploring the wider property industry, changing market conditions and lessons from my own experience. However, there will now be a stronger emphasis on practical deal analysis, investment judgement and the questions worth asking before making financial commitments.
Some editions will examine property opportunities, while others will explore market developments, challenge familiar assumptions or consider the realities of building and managing investments.
The underlying purpose remains consistent: to encourage better questions, stronger analysis and more informed property investment decisions.
Would you benefit from learning how to analyse property deals?
As part of this direction, I’m currently developing a CORE Buy-to-Let Deal Analysis Workshop, proposed for January 2027.
The two-hour practical session would be designed for aspiring and existing investors who want to become more confident assessing their first or next buy-to-let purchase.
Rather than concentrating solely on theory, the workshop would involve working through a buy-to-let example, examining the financial assumptions, identifying overlooked costs and risks, and discussing how to determine whether an opportunity is worth pursuing.
There would also be an opportunity for attendees to submit a deal for group discussion.
I’m considering an early-bird price of £49, with a standard price of £59, but before finalising the workshop, I’d be interested in hearing what investors would find most valuable.
Would you benefit from a practical workshop on analysing buy-to-let investments?
And which aspect of deal analysis would you most like to understand better: calculating realistic cashflow, identifying overlooked costs, assessing risks or evaluating an exit strategy?
I’d welcome your thoughts in the comments, particularly if there’s something you feel investors aren’t taught enough about.
A final thought
A good property might attract your attention, but a well-examined investment should be what earns your confidence.
The important question isn’t simply whether an opportunity looks attractive, but whether it continues to make sense once its assumptions have been properly challenged.
Thank you for reading the first edition of The CORE Property Edit. I look forward to continuing the conversation.
Melissa Lewis BA (Hons)
Founder & CEO, ML Property Venture
Creator of the CORE Framework™
