How to analyze a property

[Gunner Holtz]

Hello everyone I am new to BiggerPockets and real estate investing. I watched the BiggerPockets YouTube video on the 4 square method and I’ve been trying it on some properties for sale on the MLS in my area. Every property has negative cash flows. The video seems pretty simple I’m not sure if I’m messing it up or it’s just the market right now. I look at all expenses and use correct numbers. Property management in my area runs 8% and I use about $50 per unit per month for both maintenance and capital expenditures. Anyone have any tips for analyzing properties?

[Arlan Potter]

By height. I hate two story houses.

You have to know your area. I like properties that at least have a 1-1/2% rent to purchase price ratio or better.