How To Analyze Properties Using The Four Square Method

I know you want to build passive income and wealth through rental properties.

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:

Cash Flow
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.

Before diving into real estate investing, make sure you understand how to compare markets and properties. Whether you’re trying to decide between investing in Boise or Sacramento—or you’re just comparing two similar homes—this 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 The Beginner’s Guide to Real Estate Market Analysis.

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.

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!

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!

Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.