{"id":82716,"date":"2016-11-17T14:35:58","date_gmt":"2016-11-17T21:35:58","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=82716"},"modified":"2021-03-16T12:14:27","modified_gmt":"2021-03-16T18:14:27","slug":"easily-analyzing-rental-properties-four-square-method","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/easily-analyzing-rental-properties-four-square-method","title":{"rendered":"How to Easily Analyze Rental Properties Using the Four Square Method"},"content":{"rendered":"

I know<\/em> you want to build passive income and wealth through rental properties<\/a>.<\/p>\n

Who doesn’t?<\/p>\n

There is a MAJOR problem, though, that stops most people from achieving this goal: Most don’t know how to analyze<\/em> deals<\/a> correctly!
\n
\nRelated:<\/strong> How to Analyze a Rental Property to Know if it Will ACTUALLY Produce Income<\/a><\/em><\/p>\n

(Of course, if you are a BiggerPockets Pro<\/a> member, you get unlimited access to the\u00a0Property Analysis Calculators<\/a>\u00a0on BiggerPockets. But even with access to those\u00a0amazing tools, you need to know how to do the numbers\u00a0by hand.<\/em>)<\/p>\n

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:<\/p>\n

    \n
  1. Cash Flow<\/li>\n
  2. Cash-on-Cash Return<\/li>\n<\/ol>\n

    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.<\/p>\n

    \"\"<\/a><\/p>\n

    Before diving into real estate investing, make sure you understand how to compare markets and properties. Whether you\u2019re trying to decide between investing in Boise or Sacramento\u2014or you\u2019re just comparing two similar homes\u2014this guide will walk you through all the numbers you need to know. From calculating cash-on-cash return to running a comparative market analysis, the experts at BiggerPockets demonstrate the steps you need to follow and the statistics you must know with\u00a0The Beginner\u2019s Guide to Real Estate Market Analysis<\/a>.<\/em><\/p>\n

    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.<\/p>\n

    Related:<\/strong> How to Analyze a Potential Real Estate Market for Crime & Safety<\/a><\/em><\/p>\n

    Enjoy!<\/p>\n