Offering price for an Apartment

[Raj Vajir]

Hello,

I know this questions seems a little too vague, but I'm new to researching apartments and have a potential 12 unit townhouse complex grossing 100k/year.  Rent increase possibiity is there to increase gross to $120-$130k/year.  My questions is very general in that, is there a particular multiplier of gross that should be applied to the gross to get a ballpark figure.  Like say 5 times gross would translate to an offer of $500,000.  I am more familiar with independent motels.  I understand area and rent market makes a difference too.  OR is offer price based on the net?  I'm just trying to get a rule of thumb figure.  Also on BP podcast I've heard of the 50% rule, does that include the debt service?