“I Don’t Chase Deals — I Build $1M Moves With Certainty”

How I apply the 8 rules to real deals, with DSCR, yield, and clean math

I don’t look at real estate the way most people do.

I don’t care about the story.
I don’t care about the photos.
I don’t care what the broker says.

I care about one thing:

👉 Does this deal protect me first… and pay me second?

Everything I do runs through a simple framework:

• Barriers to entry

• Replacement cost

• Day 1 cash flow

• Million-dollar math

• Debt safety

• Scale

• Exit

Now I’m going to show you how I actually run this in real life.

🧠 Deal Example — 100 Unit Multifamily

Step 1 — Base Numbers (Clean + Simple)

• Units = 100

• Rent = $1,200/month

• Occupancy = 90%

Income:

100 × 1,200 × 0.90 × 12
= $1,296,000

Expenses (50% rule):

= $648,000

NOI:

= $648,000

💰 Value (Cap Rate Method)

Cap rate = 6%

$648,000 ÷ 0.06
= $10,800,000 value

🏦 Debt (Safe Structure)

Loan = 65% of value
= $7,020,000

Interest = 6.5%

Annual Debt ≈ $456,000

📊 DSCR (THIS decides if deal lives or dies)

DSCR = \frac{648,000}{456,000}

👉 DSCR = 1.42

✔️ Above 1.25 → SAFE
❌ Below 1.0 → DEAD

⚡ Cash Flow (Day 1 Test)

NOI = $648,000
Debt = $456,000

👉 Cash Flow = $192,000/year

✔️ This passes Rule #3 (Day 1 cash flow)

🎯 Yield (What I actually earn)

Let’s say total cash into deal = $3,780,000

Yield = \frac{192,000}{3,780,000}

👉 Yield ≈ 5.1%

That’s just Day 1…

👉 I don’t buy for 5%
👉 I buy for what I can TURN it into

🚀 Million-Dollar Math (This is where I win)

Let’s raise rents:

• Increase = $200/month

100 × 200 × 12
= $240,000 new income

New NOI:
648,000 + 240,000
= $888,000

New Value:

$888,000 ÷ 0.06
= $14,800,000

💥 Value Created:

14.8M − 10.8M
= $4,000,000 gain

👉 That’s the whole game

🏙️ Use Case 1 — High Barrier Market

Example: San Diego

• Hard to build

• Limited land

• Strong rents

👉 Lower risk
👉 Higher price
👉 Slower growth

✔️ I buy for stability + long-term appreciation

🌆 Use Case 2 — High Supply Market

Example: Austin

• Tons of new construction

• Rent pressure

• Deals look “cheap”

👉 Higher risk
👉 Better entry price

✔️ I only buy if:

• Cash flow strong Day 1

• Big upside baked in

🏖️ Use Case 3 — Premium Market Play

Example: Boca Raton

• High replacement cost

• Wealthy tenants

• Limited new supply

👉 I may “overpay” on paper
BUT…

If build cost is higher than my purchase:
👉 I’m already winning

🏚️ Use Case 4 — Distressed Deal (My favorite)

Scenario:

• NOI dropped

• Owner losing money

Example:

Income = $1,000,000
Expenses = $600,000
NOI = $400,000

Debt = $500,000

👉 Owner losing $100K/year

What I do:

• Buy at discount

• Fix rents

• stabilize

👉 That’s where the biggest money is made

⚖️ Debt Stress Test (What most people ignore)

If rates jump:

Debt goes from $456K → $600K

New DSCR:

600,000 ÷ 648,000 = 1.08

⚠️ Now I’m close to danger

👉 That’s why:

• I don’t overleverage

• I fix my debt

📈 Scaling Example (This is billionaire math)

Let’s say I own 1,000 units:

Rent increase = $25

1,000 × 25 × 12
= $300,000

At 6% cap:

300,000 ÷ 0.06
= $5,000,000 created

👉 Small moves → massive value

🧭 My Real Decision Framework

Before I buy anything:

• Does it cash flow Day 1?

• Is DSCR above 1.25?

• Can I create $1M+ upside?

• Is debt safe long-term?

• Is supply controlled?

• Is location strong?

If I can’t check these boxes…

👉 I walk away

🔚 Final Thought

I don’t need perfect deals.
I need predictable math.

• Cash flow protects me

• DSCR keeps me alive

• Yield pays me

• Rent growth makes me rich

👉 That’s how I go from one deal…
to millions…
to real portfolio scale

Contact

Mr. Jai Thompson

📧 MrJai@kingjairealestategroup.zohodesk.com

📞 Call or Text: 980-353-2408

Structure over sacrifice.

Stewardship over struggle.

Every deal builds legacy.