Assuming that neither party wants to do the leg work: Title company will estimate the total amount of OPEN (unpaid taxes) and multiply that figure by 150% and hold that amount in a TI.

If not find the cost, multiply it by 3 and then reduce price by that much3.

@Justin Pera, I am a licensed lender here in Florida.When obtaining a multi-family 3-4 unit with an FHA loan, all units rents, to include the one you’ll be living in, must be multiplied by .75% and cannot be less than your total monthly mortgage payment.

So multiply your downpayment by 10 to see what the hot money could possibly buy you.

As a rule of thumb, many sellers try to estimate the max value of the loan that the buyer is able to get by multiplying the amount of cash that they are comfortable spending each month on mortgage payments by 100.

For my estimates I just multiplied the $25 x the number of square ft and added 5-20k more for each property to be modest because everyone always says the repairs end up costing more than you anticipate.

Now when you rough estimate before seeing the property are you just taking the sqft multiplied by the average cost of installation for say flooring in your area as an example and adding that to the rest of the rehab costs?

That would give you the amount per room, then multiply by rooms in the unit.

Multiply that out in a year and they are making an additional 15k (neglecting tax).

If you are factoring properties into your comps that weren't sold for FMV then you comps will be skewed in a way that isn't giving that area a fair picture of what you or your rehabber can sell a house for IF it is properly marketed and advertised.Now when you're dealing with rental property comps are one component but many times other factors are more important to a rental property investor (i.e. possible cash flow & ROI, gross rent multipliers, or other "magic" numbers).