Pedrovazpaulo Wealth Investment: The Compass Method (2025)

Key Points

• The Compass Method aligns four pillars—Clarity, Cashflow, Control, Compounding—so progress feels routine, not heroic.
• Underwrite with numbers: cap rate, cash‑on‑cash (CoC), and DSCR decide “go/no‑go,” not optimism.
• Behavior beats prediction: reserves, rebalancing rules, and exit triggers protect your downside.

What “Pedrovazpaulo Wealth Investment” Means

Pedrovazpaulo wealth investment is best treated as a system, not a hunch. It’s a way to arrange your money so that everyday decisions (what to buy, what to pass on, and when to rebalance) are guided by rules you wrote while calm.

The result: consistent compounding across market cycles—without betting the farm on forecasts you can’t control.

The Compass Method (4 Pillars)

1. Clarity — One‑sentence goal, a target annual savings rate, and a documented buy box for real estate (price window, neighborhoods, unit mix, minimum DSCR, CoC hurdle).
2. Cashflow — Automate contributions to core index funds and keep a six‑to‑twelve‑month cash buffer. Rentals must stand on their own cash flow—no subsidies from your day job.
3. Control — Fixed‑rate debt where possible, conservative LTV, inspection checklists, tenant screening, and written maintenance standards.
4. Compounding — Reinvest surplus, rebalance by rules, and review annually. Small edges, repeated, beat one‑off heroics.

Real‑Asset Decision Tree & Buy Box

Use this decision path before you tour a property:

• Fit check: Is it inside your zip‑level buy box (schools, transit time, zoning comfort, typical rents)? If not, skip.
• Numbers first: Quick screen—price‑to‑rent, taxes, insurance, typical repairs. If the rough CoC looks below your hurdle, skip.
• Underwrite: Build the full pro forma: vacancy, operating expenses, reserves, and financing terms. Require DSCR ≥ 1.25× under stress (+100 bps rates, −5% rent).
• Edge plan: What value‑add gets you to target returns (e.g., laundry, parking, storage, pet policy, lighting, modest unit refresh)? If you don’t control the lever, don’t count it.
• Go/No‑Go: Only proceed if both the base case and stress case clear your thresholds.

Rental Math You Can Check

This illustrative triplex example shows how to evaluate a deal. Numbers are examples—not promises.

Notes: DSCR = NOI ÷ annual debt service. Cap rate = NOI ÷ price. Cash‑on‑cash = annual cash flow ÷ total cash in (≈ $90,750 here: 25% down + $12k closing/rehab). Always verify current taxes, insurance, and realistic rent comps in your market.

10‑Year Illustration: Where Does the Wealth Come From?

• Amortization: At 6.25% on this loan size, principal paid in 10 years ≈ $37,238.
• Appreciation (2%/yr): Price $315,000 → ≈ $383,983 in 10 years (illustrative).
• Equity after 10 years: ≈ $184,972 (value minus loan balance).
• Cumulative cash flow (base case): ≈ $79,892 over 10 years (before taxes).
• Total pre‑tax profit vs. $90,750 cash in: ≈ $186,114, or about 205% over 10 years (not annualized).

All numbers are for illustration. Your results will vary; verify with your lender, property manager, and local data.

Allocation Blueprints (by Risk Profile)

Pick the closest blueprint and adjust ±10% around targets based on income stability and temperament.

• Balanced: Core 65% • Real Assets 25% • Liquidity 10%
• Conservative: Core 55% • Real Assets 20% • Liquidity 25%
• Growth‑tilted: Core 75% • Real Assets 20% • Liquidity 5%

Rebalancing rule: Use the 5/25 method—rebalance when an allocation drifts by ±5 percentage points or ±25% of its target weight.

Risk, Behavior, and Exit Rules

• Reserves: 6–12 months of personal expenses plus 6 months of property costs (tax, insurance, P&I, maintenance).
• Leverage: Total debt ≤ 1.2× net worth; prefer fixed rates and modest LTV.
• Stress tests: Underwrite with +100 bps rate and −5% rent; require DSCR ≥ 1.25× in stress.
• Position limits: Avoid any single stock or property >10% of net worth (outside your home).
• Exit triggers: Persistent DSCR < 1.15×, rising capital expenses, or a clearly superior use of equity (after costs/taxes).

30‑60‑90‑Day Action Plan

Days 1–30: Foundation

• Write your one‑sentence goal and savings rate target.
• Draft your buy box (zip codes, price window, unit mix, minimum DSCR/CoC).
• Automate contributions to broad index funds and build your cash buffer.

Days 31–60: Pipeline

• Pull rent comps and taxes; talk to two lenders for term sheets.
• Analyze ten deals with a standardized pro forma; shortlist three.
• Walk the best one; write a value‑add plan you actually control.

Days 61–90: Execution

• Make an offer only if the base and stress cases hit your thresholds.
• Set operating systems: tenant criteria, leases, maintenance schedule, reserve policy.
• Schedule a quarterly review (returns, time spent, risk, and taxes).

FAQs

What’s unique about the pedrovazpaulo wealth investment approach?

It prioritizes rules over predictions—numbers‑driven underwriting, conservative financing, and clear exit criteria. The method is simple to repeat and scale.

How do I choose a minimum cash‑on‑cash hurdle?

Price your time and risk. If operations are hands‑on, set a higher hurdle. Many investors accept mid‑single digits for stabilized properties at current rates, aiming for upside via value‑add.

Are REITs a substitute for owning rentals?

They’re different tools. REITs are liquid and diversified; direct ownership offers control and potential value‑add. Many allocate to both.

When should I rebalance?

Either once per year or when an asset class breaches your drift rule (e.g., 5/25). Use new contributions to correct small drifts to limit taxes.

How big should my emergency fund be?

Six to twelve months of personal expenses, plus six months of property costs. If the paper math looks tight, real life will feel tighter.