Four Paychecks Beat One

How I Taught My Son to Analyze a Property Using an iPhone Calculator

Written by Jai Thompson

Kayan sent me a property the other day.

That alone made me proud.

Not because it was a perfect deal — it wasn’t — but because he was thinking like an investor. He saw multiple units, a good location, and asked, “Does this make money?”

That’s the right question.

So I turned it into a lesson.
Here’s exactly how I showed him how to break it down using only an iPhone calculator.

📍 STEP 1: WHAT ARE WE EVEN LOOKING AT?

Address: 5040 Palo Verde Rd, Las Vegas, NV
Type: 4-plex (four apartments in one building)

First lesson:

This is not a house.
This is four paychecks in one building.

And four paychecks will always beat one.

🧠 STEP 2: WHY LOCATION MATTERS (NO MATH YET)

I asked Kayan what he noticed:

• Close to UNLV
• Close to the Strip
• Close to stadiums
• Washer & dryers in every unit

That tells us people will rent here.

But liking a property doesn’t mean buying a property.

Math decides. Always.

📱 STEP 3: INCOME — IPHONE CALCULATOR TIME

We don’t guess.
We estimate conservatively.

Example rent (just for learning):

• 4 units
• $1,500 per unit

👉 On the calculator:
1500 × 4 = 6000

That’s $6,000 per month.

Now yearly:

👉
6000 × 12 = 72,000

Gross income = $72,000 per year

📱 STEP 4: EXPENSES — KEEP IT SIMPLE

I taught him one rule:

Small apartments usually eat about 35% in expenses.

So we calculate:

👉
72,000 × 0.35 = 25,200

Expenses ≈ $25,200

Now the most important line:

👉
72,000 − 25,200 = 46,800

✅ NOI (money left over) = $46,800

That number tells us everything.

🧱 STEP 5: THE 85 / 45 / 24 RULE (THE FUN PART)

Now I showed him how investors structure, not just buy.

Let’s assume a middle value for learning:

Example FMV: $700,000

Offer (85%)

👉
700,000 × 0.85 = 595,000

Recorded Price (45%)

👉
700,000 × 0.45 = 315,000

Lender (24%)

👉
700,000 × 0.24 = 168,000

That’s the structure.

But here’s the key lesson I gave him:

If the NOI is weak, the structure doesn’t save the deal.

Income comes first.
Structure supports income — not the other way around.

🚦 STEP 6: SO… IS THIS A DEAL?

For Kayan, I kept it honest and simple:

Pros
✔️ Multiple units
✔️ Strong rental area
✔️ Good investor instinct

Cons
❌ NOI is small
❌ Payment would eat most cash flow
❌ Property just sold (seller has no pressure)
❌ Higher wear-and-tear area

Final Grade: B

Good learning property.
Not a legacy buy.

And that’s a win — because knowing when to say no is how you stay rich.

🧠 THE REAL LESSON I WANTED HIM TO LEARN

You don’t buy houses.
You buy income.

You don’t guess.
You calculate.

And you don’t chase deals.
You let the math tell you when to move.

All with an iPhone calculator.

That’s how real investors are built.

Structure over sacrifice. Stewardship over struggle. Every deal builds legacy.