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Updated over 2 years ago on . Most recent reply

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My first attempt at the "4 square method" What am I doing wrong

Michael Shenouda
Posted

Hello all,

So I'm attempting to learn by using the 4 square method on properties I see online to

A. See if it's a good investment

B. Compare my results to the numbers provided by whichever site I'm looking at.

I included a screenshot of my makeshift excel sheet I'm using...

Property is in PA.

Monthly rent is included in the listing.

Taxes I'm using the listings numbers

Insurance I'm using the listings numbers

Utilities paid by tennant

Vacancy 5%

Repairs I didn't know how to estimate

Property Management 10%

Down Payment 25%

The listing is showing a cash flow of $1,050 / year, which equates to $87.50 per month. My numbers show a negative cash flow... are my assumptions severely off? I'm not understanding.

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