Real Estate Deal Analysis & Advice

How to Easily Analyze Rental Properties Using the Four Square Method

Expertise: Landlording & Rental Properties, Personal Development, Real Estate News & Commentary, Real Estate Investing Basics, Business Management, Flipping Houses, Mortgages & Creative Financing, Real Estate Deal Analysis & Advice, Real Estate Wholesaling, Personal Finance, Real Estate Marketing, AskBP
528 Articles Written
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I know you want to build passive income and wealth through rental properties.

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Who doesn’t?

There is a MAJOR problem, though, that stops most people from achieving this goal: Most don’t know how to analyze deals correctly!

Related: How to Analyze a Rental Property to Know if it Will ACTUALLY Produce Income

(Of course, if you are a BiggerPockets Pro member, you get unlimited access to the Property Analysis Calculators on BiggerPockets. But even with access to those amazing tools, you need to know how to do the numbers by hand.)

Therefore, today I want to introduce a very simple, easy-to-understand method for analyzing rental properties for the two numbers I care most about:

  1. Cash Flow
  2. Cash-on-Cash Return

In the following video, I dive deep into the analysis on a property and explain just how I was able to estimate my future cash flow and cash-on-cash return in just a few minutes — and how you can (and should) do the same.

Here’s the video. Be sure to take some time today to really dive into this. It just might give you the tools you need to build that financial freedom you crave.

Related: How to Analyze a Potential Real Estate Market for Crime & Safety

Enjoy!

Bonus Download

To help you master the art of The Four Square Method, I’ve even created an easy-to-follow worksheet that you can download right now and use for your next deal analysis. Trust me — you are going to LOVE this thing! Click here to download!

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P.S.

If you want to get better at analyzing deals, don’t forget — each week I host a LIVE and FREE webinar on BiggerPockets, where we dive deep into the analysis on a real life property! Join me for next week’s webinar!

Any questions about analyzing deals with this method?

Let me know your questions and comments below!

Brandon Turner is an active real estate investor, entrepreneur, writer, and co-host of the BiggerPockets Podcast. He began buying rental properties and flipping houses at age 21, discovering he didn’t need to work 40 years at a corporate job to have “the good life.” Today, with nearly 100 rental units and dozens of rehabs under his belt, he continues to invest in real estate while also showing others the power, and impact, of financial freedom. His writings have been featured on Forbes.com, Entrepreneur.com, FoxNews.com, Money Magazine, and numerous other publications across the web and in print media. He is the author of The Book on Investing in Real Estate with No (and Low) Money Down, The Book on Rental Property Investing, and co-author of The Book on Managing Rental Properties, which he wrote alongside his wife, Heather, and How to Invest in Real Estate, which he wrote alongside Joshua Dorkin. A life-long adventurer, Brandon (along with Heather and daughter Rosie) splits his time between his home in Washington State and various destinations around the globe.

    Joshua Jorgenson from Austin , Texas
    Replied almost 3 years ago
    The worksheet download link seems to be broken. Are there other methods to dowload this?
    Brandon Turner Investor from Maui, HI
    Replied almost 3 years ago
    Hey Joshua, seems to be working for me – so maybe give it a try again? Maybe it was broken when you asked this question! 🙂 Sorry for the delay!
    Brett Chaponot Real Estate Agent from El Dorado Hills, California
    Replied almost 3 years ago
    Love it!
    Chris Trull from Greenville, South Carolina
    Replied over 2 years ago
    Hey, Loved this. Heard it several times, but seeing it brings it home. Also, breaking it into 4 sections really simplifies it a lot. Thanks
    Sebastian Bedoya from Passaic, New Jersey
    Replied over 2 years ago
    awesome post like always Brandon. Right now I am in that phase of learning to analyze deals to see if its worth pursuing. One question I have. When we use the calculator, do we use the asking price or the price we’d be willing to offer for the property?
    Tyler Chase Real Estate Investor from Jackson, MI
    Replied about 2 years ago
    @Brandon, quick question. Do we use the current rent (if rented), or what we plan on renting it for (if not currently rented)? Also, what are your thoughts on purchasing multi-family properties that are not currently rented vs already rented properties?
    Dave Truax from Owings Mills, Maryland
    Replied almost 2 years ago
    Great info for a newbie.
    Earl Co Rental Property Investor from Denver, CO
    Replied over 1 year ago
    I’m leaving this here in case someone wants to adapt my version of a spreadsheet derived from the four-square method worksheet, as well as an automated, programmatic way of populating the spreadsheet given a paragonrels.com link from an agent/broker. Enjoy! https://github.com/earlvanze/Paragon-MLS-API-Interface
    Harith Hadi from Dallas Texas
    Replied 8 months ago
    I love it Thank you Brandon You are awesome…
    Justin Johnson from Fort Smith, AR
    Replied 8 months ago
    Hey, Brandon, I just wanted to see if this way of analyzing properties works for multifamily as well? I have just started analyzing properties and am looking for the tools I need to do analyses properly. Thanks!