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 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 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 https://www.BiggerPockets.com/RentalPropertyYoutube
Is cashflow a subject for taxation? I understand, that tax we considered in expenses was the property tax.
Awesome video, I totally didn’t do my numbers properly
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. 😉
This is very helpful information to me. Thanks so much !
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!
Mrs Patricia is legit and her method works like magic I keep on earning every single week with her new strategy
The hardest part of real estate is the down payment as a beginner I think
He is like go to this site every 10 seconds
Annoying
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.
Invest in bitcoin, gold, silver, buy stock, forex market, commodities. Just invest and save yourself.
When would you consider the cap rate with this method, if at all? Thanks.
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. 😂
Great video!
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
The Four Rectangle Method 🙈
so were did the 50k come from??? Im missing something…
the sp500 has returned about 10% annually over the past 100 years
The rigid dedication modestly stop because anime promisingly coach over a abiding production. spooky, brainy money
This is a 4.5 cap property, @ 5% interest rate environment it will NEVER be good..
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.
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 $15,000 a year education. Please continue with this type of content!
Isn’t closing costs like 3-5% depending on the loan type? How did he get a 1.5% closing cost?
So this is how u manage everything when u do rental properties?
S&p average is 10% and the nasdaq average is 13%
no one ever talks about this so if your new keep this in your head while you learn about realestate. you can do the 4 square method and find out your cash flow on a property is 300$ 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.
Hello
30 years!!!!!!!????????
Coming across Mr Carlos was a blessing to me, because it was difficult to find someone reliable and trusted as he. All he cares about is trying all his possible best to enable you achieve all your set out goals. My financial breakthrough came through from he’s good work. I appreciate you Mr Carlos Andrew .
Click on his link to contact his now if you’re interested in trading.
👇👇👇👇 👇👇
@carlos_andrewfx on instagram or whatsapp +19715122836
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.
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.
All that work to make the same % as an index fund. I wouldn’t buy this property for more than $200k
Thank you so much! This was helpful
Are there places that you can charge 2k/mo for a 200k unit? Not anywhere near me.
great video, but man that marker on the board noise is just beyond what I can handle
The best!
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
I want a new woof
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.
Can I use this formula for house hacking? Very good video by the way. I’m looking to buy a duplex myself.
TY ☺️
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?
I read this guys book it had so much info so yea still studying but great stuff
Learn the stock market. this sucks haha. Look into selling options.
Feeling bad that how did I miss this video. Very knowledgeable. Thank you.
The mute employee optically face because brother-in-law ultrasonographically suggest inside a coordinated timpani. truthful, ripe mailman
Love your videos. Been a LL for 30 years! Learned a lot from you already.
I would like a real estate agent to help me find a profitable rental. Are there certain real estate companies that specialize in rentals ?
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?
This would do so well on Udemy
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 :")