Bigger Pockets Multifamily

[Stephen Horan]

Hello BPockets family. After reviewing some multifamily walkthroughs and deal analysis bigger pockets videos, I appreciated the "Quadrant" analysis, where they look at the Return on investment in all forms and combine to something usually well above 20%. Top left quadrant is proposed appreciation, top right quadrant is Cashflow, Bottom left is Principle paid, and bottom right was labeled and clamed as "taxes". I took that as property tax writeoff, and if so, I chose to add mortgage interest and depreciation into that bottom right quadrant. Knowing my own tax bracket, i then take the percentage of the writeoffs listed in that quadrant, and can then apply it to ROI with all other quadrants. How does this deal analysis method sound to others? Additionally, I prefer to consider rental income scalability based on proposed rental increase, and compare that to the alternative deals I am looking at keeping or acquiring.

If this wasn't clear enough I can try to be more descriptive.

[Stephen Horan]

I should. Since 1 quadrant here is the first year, an IRR would need the following years, wouldn't it?