Calculating Numbers on a Rental Property [Using The Four Square Method!]

Learn how to analyze a rental property with the unique "four square" method and make sure your next rental property investment is a cash cow! In this video from BiggerPockets.com, Brandon Turner (author of The Book on Rental Property Investing and co-host of the BiggerPockets Podcast) shares with you the step by step method for determining the monthly cash flow and cash on cash return for any rental property investment. Calculating the numbers on a rental property doesn't need to be difficult - and this video proves it.

Comments

1. This was great way to do a quick calculation !
2. The purchase price vs rent numbers are fantasy. In my real world, a $200000 property would rent for $800/mo at best!
3. so his comment about the property taxes whether they're high or low is not that important is in fact a huge and monumental important factor. he also doesn't discuss the possibility of special assessments,cost of eviction, but merely States try to budget$100 a month with no real methodology behind setting the budget. finally is absolutely no discussion about property appreciation and what the projected holding. Should be. in short this is Let's Make a Deal not let's make an investment.
4. what is purchase price how can you calculate down payment without knowing what the initial cost is?
5. The roof would cost the same if you set aside $100 a month for a roof and if you didnt set any money aside.
6. I was able to follow you till the ROI segment. ROI is a relative term and really has no legitimate value for the sake of this video.  With your $40,000 down payment example,  your assuming this was money the buyer no longer has, when in fact its 'purchased equity'. I think the formula is much more complicated than you're indicating.
7. I'm having an issue understanding how you're charging 2k a month in rent for a 150k house
8. thank you soo much
9. I really like this video, brandon gets right to it with zero fluff, which isnt always the case. This video was full of info with zero filler. My only criticism is if you are doing any kind of value add, it would have been nice to see the carry cost figured into this deal. Other than that, great job!
10. Nice way to organize calculations. I have done this method but on a scratch pad, disorganized approach. Another angle future investors should look at is how much of your monthly mortgage payment goes into your equity and this should be a part of the income. The rest of the monthly mortgage goes mainly to the interest expense.
11. great video nice analysis i am waiting for it i tried other businesses but not succeed i am planning for enter in to real estate. i am at beginner level i am at the age of 37. i am looking early retirement for financial freedom as early as possible .
    you have given nice clarification but still i have so many doubts i am not good at english i not understood what about two hundred thousand dollars we calculated only fifty thousand dollars how we gonna pay for another one fifty thousand dollars better i have to get experience in realestate ,in loans ,i.e. in accounting and how banks will be give such home loans
12. Love the video! This is very helpful and easy to follow. Thank you for sharing this method.
13. Fantastic breakdown, will be using this from now on!
14. This video absolutely changed my life. At 12:54 Brandon asks the fateful question that would send me off on my life's journey. The answer, I have found, is no. Peanut butter is NOT the best color. The best color peanut butter is clearly indigo. Armed with this knowledge, I set off to change the world and achieve financial freedom for myself and my family. Thank you Brandon.
15. Accounting lol
16. for the webinar is it recorded so one can listen to it after the airdate if they can't make that time?
17. and he said, I want to run through it real quickly. Time: 22:59. how is that quickly?? lol
18. Exelent