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
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If I'm going to be living in one of the spaces how would I come up with the math do I just divide by two on the income?
I advice anyone trying to buy a house but don’t have the complete funds. I urge you to Invest in stock market, then make good profit before buying a house, his mail address is above my comment
I made $78k after just one week.
In a perfect world where tax rates dont move. With that cashflow, equity, plus adding in 5% avg yearly appreciation. In 4 years 40k(appr)+18720(cash flow)+equity(50k)=$108,720. In 8 years $217,440. Now own 4 of these. $869,760 in 8 years.
Take away from the video: NEVER BUY A CONDO/APARTMENT.
Because Cash on Cash return will always be NEGATIVE.
Hello I have a quick question so when I utilize the 4 square method it tells me that I am at a 4.8% for my cash on cash return but when I use the (2%) method or the 2% 50% 70 % I should say it tells me I’m a little over 1 percent I am just trying to get the same outcome for both methods any help?? Thanks
when I do a property from online they usually have an estimate monthly payment , when I do income minus expenses I end up with a negative cashflow.. what am I doing wrong?
Seen this video years ago had to search for it,didn't remember the channels name or what the guy looked like.But I found it!! An it was just as helpful today as it was when I first seen it if not more
What are the industry norms for CAPrate and C-C returns? Hhow do we compare it in the markets?
amazing video man. thanks so much. can’t wait to get started in my real estate investing journey.
Hey this is beautiful Brandon well explained, what about if I pay cash for a property? What’s the numbers?
Brandon, what number would I use in investments (Cash on Cash ROI), if I’ve already paid off my property in full?
Probably a great idea to get a credit check, my parents did not do a credit check and the tenant refused to pay rent that cost them over $20,000 and it took mouths to get him out.
thank you for sharing this video
Is this method useful for any country?
How’d you come up with the random number to charge for rent?
Even with a zero cash flow you're still building equity while you are paying off your monthly installments of the loan.
Excellent video by the way!!!
That's one of the best looking hypothetical duplexes I've ever seen.
Hello, I live in Portugal. I want to start investing in houses, but in Malta, because there are low taxes, so what do you think, I want advice from an expert
and thank you
Pretty obvious analysis. I did the same when I was buying my properties.
However, I have to give a credit for such simple and clear presentation. Well done 👍🏻
I just found you and you provide some much great information. Thank you. Became a subscriber!
Of course your example return is higher than the average, because these numbers are completely out of reality. You could never find a property that would rent for 1% of its market value. Paying 200k and renting for 2k, is impossible, and would be a dream for any investor. That's why most are still on stock market.
Why not a Green marker for the $$$ ?
Great video, thumps up
lmao so many facts
How can I use this with brrr
Love how there’s no dislikes !!
Thank you for sharing
I'm from the UK can you please define some of your American phrases. Thank you
Can you do a real estate terminology video for those whos asset or property language is different.
This is why hate these videos. Can you tell me where the hell you can get 2k rent per month of the property which is 200K in value 😡definitely not in Australia 😡
This is not a realistic analysis.
Great video but what is your source for that s&p 500 average return?
Hahaha …. been a landlord for 50 years. I have NEVER lost $$$ on any of my investments….
Good job