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

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, Brandon Turner (author of The Book on Rental Property Investing and co-host of the BiggerPockets Podcast) shares with you the step by step real estate investing 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.

This is a must-watch for anyone investing in real estate.

Check out Brandon’s #1 bestseller, Rental Property Investing, at


  1. Алексей Инюшин on June 24, 2021 at 8:41 pm

    Is cashflow a subject for taxation? I understand, that tax we considered in expenses was the property tax.

  2. Adam Brakey on June 24, 2021 at 8:42 pm

    Awesome video, I totally didn’t do my numbers properly

  3. KickAssets on June 24, 2021 at 8:43 pm

    I went from buying a house every 1.5 years to now around 1 in 9 months or less in the span of 7 years. I started 8 years ago and now up to 8 houses, so it’s averaged out to 1 house a year at this point. There is no fast way to get rich, but hard work, dedication, commitment, using your brain and common sense and investing in something you can control to limit your risk. Went from $2000 income to $10,000 in that span. I aint rich, but it’s quite an accomplishment considering I didnt start with much. I also learned a lot of new skills along the way…how to do renovations…make youtube videos…evaluating properties…getting renters…learning a new language (as all my business transaction are in Japanese)….and much more. I am starting to make some videos on the renovations I am doing and will eventually branch out into how I did it all and got to where I am. ALL I CAN SAY is that everything is EXPONENTIAL….so the best piece of advice is to start NOW!! I exponentially grew so fast that I am even shocked at the results. If you have any questions, feel free to ask as I am a pretty open downtoearth guy. I only have 3 videos so far as I have JUST finally started this channel (separate from my eBenkyou channel), so I hope I can help someone. Good luck everyone! Work smarter and harder. 😉

  4. Lisa on June 24, 2021 at 8:43 pm

    This is very helpful information to me. Thanks so much !

  5. ANNIE BANNANIE on June 24, 2021 at 8:43 pm

    Electric never goes away for a landlord- Common Areas are the Landlords responsibility! ……A 4 Family will have 5 recorded electic bills if done RIGHT!
    There is a law that "common Area’s" are the landlords responsibility….Judges absolutely despise landlords that do the following….Chapter 93A would payout treble 2X-or Triple 3X’s to tenant
    Get caught with Basement-outside lights, porch lights, outside outlets etc. hooked into a "Tenants Box"…Tenant can sue-get ALL the cost they spent on Electric for entire tenancy-
    Your in bigger trouble if you have coin op laundry and tenant is paying to run dryer….It can get litigious I promise!

  6. Thomas Rudiger on June 24, 2021 at 8:44 pm

    Mrs Patricia is legit and her method works like magic I keep on earning every single week with her new strategy

  7. Fazbianz on June 24, 2021 at 8:46 pm

    The hardest part of real estate is the down payment as a beginner I think

  8. Chris Papageorgiou on June 24, 2021 at 8:46 pm

    He is like go to this site every 10 seconds

  9. Steven Yang on June 24, 2021 at 8:50 pm

    It’s actually quite easy to make 20% on your stock investments if you know what you’re doing. Just like investing in Real Estate, it’s all about your risk management and risk tolerance.

  10. Nicholas Parker on June 24, 2021 at 8:50 pm

    Invest in bitcoin, gold, silver, buy stock, forex market, commodities. Just invest and save yourself.

  11. Mark Gatz on June 24, 2021 at 8:51 pm

    When would you consider the cap rate with this method, if at all? Thanks.

  12. K Hall on June 24, 2021 at 8:54 pm

    You said $100/unit for capex and repairs. This is a 2 unit property, so that should be $200. But you only wrote down $100 for each of those. So your expenses are short by $200/month.

    Either that, or I am just confused. 😂

  13. Living Off Rentals on June 24, 2021 at 8:55 pm

    Great video!

  14. Andrey Brenes on June 24, 2021 at 8:55 pm

    i want to say thanks to youtube algorithm to show me this video and second i want to say thanks to you, you got a new subscriber and future real estate investor. this kind of numbers are selling by "financial coach" for a lot of money

  15. Martin on June 24, 2021 at 8:55 pm

    The Four Rectangle Method 🙈

  16. stlglassproject on June 24, 2021 at 8:59 pm

    so were did the 50k come from??? Im missing something…

  17. Serge Canepa on June 24, 2021 at 9:01 pm

    the sp500 has returned about 10% annually over the past 100 years

  18. Nootpocket on June 24, 2021 at 9:03 pm

    The rigid dedication modestly stop because anime promisingly coach over a abiding production. spooky, brainy money

  19. Hans White on June 24, 2021 at 9:03 pm

    This is a 4.5 cap property, @ 5% interest rate environment it will NEVER be good..

  20. Vladimir Talijan on June 24, 2021 at 9:05 pm

    ROI here is criminally low, using that 200k and doing literally anything else will get you probably 100 or 200 times larger ROI. Like flipping houses or cars, or investing in any business. This is maybe ok if we were Smurfs with a life span of 500 years, but waiting 30 years to get 200k while gettings only peanuts, I don’t need 200k when I’m 70 🙂 🙂 And if you get any major repairs through those years you could easily spend everything you earned while renting, which is ridiculous. This is great if you have $10 or $20 million laying around, but getting loans to do this make zero sense.

  21. Lucas Bourgeois on June 24, 2021 at 9:05 pm

    Just want to say that these type of videos (online lecture format) are revolutionary. As a college student who had to endure Zoom classes with professors who just sent us the syllabus and online worksheets, this video supersedes the quality of my $15,000 a year education. Please continue with this type of content!

  22. Keenan Yoseph on June 24, 2021 at 9:05 pm

    Isn’t closing costs like 3-5% depending on the loan type? How did he get a 1.5% closing cost?

  23. YU on June 24, 2021 at 9:06 pm

    So this is how u manage everything when u do rental properties?

  24. Miguel Beretta on June 24, 2021 at 9:07 pm

    S&p average is 10% and the nasdaq average is 13%

  25. john smith on June 24, 2021 at 9:09 pm

    no one ever talks about this so if your new keep this in your head while you learn about realestate. you can do the 4 square method and find out your cash flow on a property is 300$ but if you refinanced your house to get 30k as a down payment your monthly payments on your personal property is going to go up. do not forget to add this to the cost of your investment.

  26. Cash-in with Cassian on June 24, 2021 at 9:11 pm


  27. bad indian on June 24, 2021 at 9:15 pm

    30 years!!!!!!!????????

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  29. cali kid on June 24, 2021 at 9:17 pm

    My ROTH ira has averaged 10 over 9 years. But my stocks aren’t going to scale as fast as the BRRRR method. I am saving up to take advantage of market corrections post COVID market adjustments.

  30. George Sibahie on June 24, 2021 at 9:18 pm

    One mistake… You use the full mortgage to calculate your cash-flow, but to calculate your roi, you only use the interest on the mortgage excluding your principle payment… So the ROI is wrong.

  31. Michael North on June 24, 2021 at 9:18 pm

    All that work to make the same % as an index fund. I wouldn’t buy this property for more than $200k

  32. Rachel on June 24, 2021 at 9:20 pm

    Thank you so much! This was helpful

  33. Aaron Pops on June 24, 2021 at 9:20 pm

    Are there places that you can charge 2k/mo for a 200k unit? Not anywhere near me.

  34. Vladi - On A Budget on June 24, 2021 at 9:21 pm

    great video, but man that marker on the board noise is just beyond what I can handle

  35. Thad Wharton on June 24, 2021 at 9:21 pm

    The best!

  36. Sean A on June 24, 2021 at 9:21 pm

    I’m in the raleigh area NC could you tell me where to start looking to buy cheap and make some good money off of renters?? I’ve never done this before

  37. Will Wang on June 24, 2021 at 9:23 pm

    I want a new woof

  38. Matthew Garcia on June 24, 2021 at 9:24 pm

    It sounds like your entry is high.
    Why not buy a lean?
    Don’t change the formula at all just enter differently.

    Find a wedge deal amongst the lean roster and buy the lean.
    Wait the year required and if it’s not purchased back from you (you also make a return here) you then claim the property and immediately remodel the home rent it out refinance and repeat.

  39. glenn masere on June 24, 2021 at 9:28 pm

    Can I use this formula for house hacking? Very good video by the way. I’m looking to buy a duplex myself.

  40. वायलेंट सेंट on June 24, 2021 at 9:28 pm

    TY ☺️

  41. NaturallySally on June 24, 2021 at 9:29 pm

    For the expenses, does it include sales taxes. Let’s say I spent 100 for a fob but after tax it’s 113. Can I claim 100 or 113?

  42. BigA on June 24, 2021 at 9:29 pm

    I read this guys book it had so much info so yea still studying but great stuff

  43. Titan Munday on June 24, 2021 at 9:31 pm

    Learn the stock market. this sucks haha. Look into selling options.

  44. RentOS Property Management Software on June 24, 2021 at 9:33 pm

    Feeling bad that how did I miss this video. Very knowledgeable. Thank you.

  45. erick tejada on June 24, 2021 at 9:34 pm

    The mute employee optically face because brother-in-law ultrasonographically suggest inside a coordinated timpani. truthful, ripe mailman

  46. MsDSWEENEY on June 24, 2021 at 9:34 pm

    Love your videos. Been a LL for 30 years! Learned a lot from you already.

  47. TopGT on June 24, 2021 at 9:35 pm

    I would like a real estate agent to help me find a profitable rental. Are there certain real estate companies that specialize in rentals ?

  48. Miguel Beretta on June 24, 2021 at 9:36 pm

    What’s a rough average cash on cash return %? I have 560k in an index fund that has averaged 20% over the past 5 years, which is obviously inflated. The lifetime return average for the fund is 13%.

    What would be a realistic return if I place that 500k into multi families?

  49. Ryan Lockhart on June 24, 2021 at 9:37 pm

    This would do so well on Udemy

  50. Cam Boyloy on June 24, 2021 at 9:39 pm

    I tried to do calculation within Cambodia situation like if we bought a house of $150,000 we can only rent for $500/m max, let say we down payment $20,000 but the mortgage is so high the interest rate is 7.7% (one of the lowest interest rate we could find), and if we do it for 20 years we pay around $1,000/m so the cash flow is minus. What should i do to survive this one :")