That should be fine, but I would recommend looking to upgrade at some point to at least a 5 gallon "lobster/crab" pot. Something with high walls will prevent the possible boil overs and make it easier to pour. I just did my first 5 gallon batch with a 3-3.5 gallon pot and it was like babysitting a toddler. Constantly stirring and watching for problems, playing around with the heat level, etc. I think with a 4 gallon pot you should be fine.
Just first boil 2-3 gallons of water for 10min or so and then put that in your fermenter (if plastic just pour it in and rest the top on lightly, if glass add some water slowly for the first minute or so to let the glass warm up). Now use another 2-3 gallons of water with your extract and when finished you should have the proper 5 gallons.
Here's a tip to avoid a mistake I made. Fill your fermenter with 4 gallons of water and mark where the level is. Now add a 1/2 gallon, mark that, and add another 1/2 gallon, mark, and a final 1/2 gallon, mark. This will let you know exactly how much liquid you have at all times and makes it easy to see if you are over/under by a bit. I think I was short almost a gallon for my first batch because of too much boil off (short and very wide pot allowed for a LOT of evaporation during boiling). But I never marked my carboy, and it was a 6.5 gallon one which made it impossible to judge where the level should be. I'm just about done primary fermentation, and before I switch over to my secondary (5.0 gallon glass) I'll make those markings on the secondary to tell exactly how off I am. I'll then go back and do the same for the primary so next time I won't be short.
Goodluck!