How to Use the 4-3-2-1 Rule for Rental Property Analysis

In this episode, Lucas and Luna dive into the 4-3-2-1 rule — a back-of-the-envelope method for quickly evaluating rental property cash flow without a spreadsheet. Lucas explains how the rule allocates gross rent: 40 percent to expenses, 30 percent to debt service, 20 percent to cash flow, and 10 percent to vacancy. They walk through a concrete example using a hypothetical $2,000/month rental in Columbus, Ohio, and discuss when the rule works, when it breaks, and how it compares to the 50 percent rule and the one percent rule. Luna challenges whether the 20 percent cash flow target is realistic in today's market, and Lucas shares how a landlord could adjust the percentages for high-cost or low-cost markets. Perfect for new investors looking for a quick screening tool. #4-3-2-1Rule #RentalProperty #RealEstateInvesting #CashFlow #LandlordTips #PropertyAnalysis #RealEstateMath #InvestingStrategy #FexingoBusiness #BusinessPodcast #RealEstatePodcast #RentalIncome #ExpenseRatios #VacancyRate #DebtService #ROI #FinancialLiteracy #PassiveIncome Keep every episode free: buymeacoffee.com/fexingo