According to a report by the Bay Area Council Economic Institute, for each job created in the high-tech sector, approximately 4.3 jobs are created (multiplier effect) in other local good and services sectors across all income groups, including lawyers, dentists, schoolteachers, cooks, and retail clerks, among many others.I also agree with Account Closed, 50,000 jobs x $100,000 will have a significant impact on any local economy.

Yes, they are multiply buildings, but they are strategically and closely located so that I can manage easier.

A typical loan requires a down payment of 20% - 25%, so take your savings and multiply them by 4 or 5 to get your max purchase price.

Furthermore,BiggerPockets is not responsible for any human or mechanical errors or omissions.Financial ProjectionsTotal Initial Equity:$116,000.00Gross Rent Multiplier:9.30Income-Expense Ratio (2% Rule):0.86%ARV based on Cap Rate:-50% Rule Cash Flow EstimatesTotal Monthly Income:$4,300.00x50% for Expenses:$2,150.00Monthly Payment/Interest Payment:$2,061.40Total Monthly Cashflow using 50% Rule:$88.606 Flat in Burbank, IL (copy)6148 W.79th st, Burbank, IL, Burbank, ILLINOIS` 60459Monthly Income:Monthly Expenses:Monthly Cash Flow:Pro Forma Cap Rate:$4,550.00$4,246.42$303.585.95%NOITotal Cash NeededCash on Cash ROIPurchase Cap Rate$27,349.00$98,000.003.72%5.95%Property InformationMLS Number: 09262104Purchase Price:$460,000.00Purchase Closing Costs:$5,000.00Estimated Repair Costs:$1,000.00Total Cost of Project:$466,000.00After Repair Value$460,000.00Down Payment:$92,000.00Loan Amount:$368,000.00Loan Points:$0.00Loan Fees:Amortized Over:30 yearsLoan Interest Rate:5.000%Monthly P&I:$1,975.50Rent$4,350.00Other$200.00Total$4,550.00ExpensesVacancy$227.50 (5%)Repairs$227.50 (5%)CapEx$227.50 (5%)Electricity$50.00 (1%)Water & Sewer$150.00 (3%)Garbage$170.00 (4%)Insurance$250.00 (5%)P&I$1,975.50 (43%)Property Taxes$938.42 (21%)Misc$30.00 (1%)Total$4,246.42 (93%Financial ProjectionsTotal Initial Equity:$92,000.00Gross Rent Multiplier:8.42Income-Expense Ratio (2% Rule):0.98%ARV based on Cap Rate:-50% Rule Cash Flow EstimatesTotal Monthly Income:$4,550.00x50% for Expenses:$2,275.00Monthly Payment/Interest Payment:$1,975.50Total Monthly Cashflow using 50% Rule:$299.507914 W.82nd ave,Justice ,IL 60458, Justice, ILLINOIS 60458MLS number: 08246034.6 Flat with 1/4 bedroom Basement Apt or Studio Purchase Price: $480,000.00 Purchase Closing Costs: $5,000.00 Estimated Repairs: $15,000.00 Total Project Cost: $500,000.00 After Repair Value: $500,000.00 Down Payment: $96,000.00 Loan Amount: $384,000.00 Loan Points: $0.00 Loan Fees: Amortized Over: 30 years Loan Interest Rate: 5.000% Monthly P&I: $2,061.40 Total Cash Needed By Borrower: $116,000.00 Monthly Income: $4,300.00 Monthly Expenses: $4,961.40 Monthly Cashflow: -$661.40 Pro Forma Cap Rate: 3.36% NOI: $16,800.00 Total Cash Needed: $116,000.00 Cash on Cash ROI: -6.84% Purchase Cap Rate: 3.50% Expenses Income 50% Rule Total operating expenses: $2,900.00 Mortgage expenses: $2,061.40 Vacancy: $215.00 Repairs: $215.00 CapEx: $430.00 Electricity: $40.00 Water & Sewer: $215.00 Garbage: $107.00 HOA: $267.00 Insurance: $170.00 P&I: $2,061.40 Property Taxes: $1,152.00 Misc: $89.00 Analysis Over Time Hide Assumptions 0%/year Expense Increase 0%/year Income Increase 0%/year Property Value Increase Year 1 Year 2 Year 3 Year 4 Year 10 Year 20 Year 30 Total Annual Income $51,600.00 $51,600.00 $51,600.00 $51,600.00 $51,600.00 $51,600.00 $51,600.00 Total Annual Expenses Operating Expenses Mortgage Payment $59,536.74 $34,800.00 $24,736.74 $59,536.74 $34,800.00 $24,736.74 $59,536.74 $34,800.00 $24,736.74 $59,536.74 $34,800.00 $24,736.74 $59,536.74 $34,800.00 $24,736.74 $59,536.74 $34,800.00 $24,736.74 $34,800.00 $34,800.00 — Total Annual Cashflow -$7,936.74 -$7,936.74 -$7,936.74 -$7,936.74 -$7,936.74 -$7,936.74 $16,800.00 Cash on Cash ROI -6.84% -6.84% -6.84% -6.84% -6.84% -6.84% 14.48% Property Value $500,000.00 $500,000.00 $500,000.00 $500,000.00 $500,000.00 $500,000.00 $500,000.00 Equity $121,665.40 $127,620.66 $133,880.60 $140,460.80 $187,646.47 $305,648.89 $500,000.00 Loan Balance $378,334.60 $372,379.34 $366,119.40 $359,539.20 $312,353.53 $194,351.11 — Total Profit if Sold -$2,271.34 -$4,252.82 -$5,929.62 -$7,286.16 -$7,720.93 $30,914.09 $170,634.53 Annualized Total Return -1.96% -1.85% -1.73% -1.61% -0.69% 1.19% 3.06% Monthly Income: Monthly Expenses: Monthly Cash Flow: Pro Forma Cap Rate: $4,300.00 $4,961.40 -$661.40 3.36% NOI Total Cash Needed Cash on Cash ROI Purchase Cap Rate $16,800.00 $116,000.00 -6.84% 3.50% Property Information MLS Number: 08246034 Purchase Price: $480,000.00 Purchase Closing Costs: $5,000.00 Estimated Repair Costs: $15,000.00 Total Cost of Project: $500,000.00 After Repair Value $500,000.00 Property Description 6 Flat with 1/4 bedroom Basement Apt or Studio Down Payment: $96,000.00 Loan Amount: $384,000.00 Loan Points: $0.00 Loan Fees: Amortized Over: 30 years Loan Interest Rate: 5.000% Monthly P&I: $2,061.40 Income Rent $4,100.00 Other $200.00 Total $4,300.00 Expenses Vacancy $215.00 (5%) Repairs $215.00 (5%) CapEx $430.00 (10%) Electricity $40.00 (1%) Water & Sewer $215.00 (5%) Garbage $107.00 (2%) HOA $267.00 (6%) Insurance $170.00 (4%) P&I $2,061.40 (48%) Property Taxes $1,152.00 (27%) Misc $89.00 (2%) Total $4,961.40 (115%) Buy & Hold Analysis - 03/02/17 01:58:53 PM Page 1 of 3 Calculations based on a 31-day month.

When you start changing the percentage of debt that is on the property, your ROI multiplier increases.

p=2&id=343417#Basically, take your purchase price and multiply that by .015.

You could say that the GRM (Gross Rental Multiplier) is 3.0.

Nothing fancyMeasure all flooring surfaces and decide what floor I want.Depending on the flooring: I find the actual floor sq/ft price and multiply by the space.

My 10 year goal is to purchase multi family complexes by using something like Brandon Turners "7 years to 7 figures" model, multiplying that x 4, and using the equity to purchase the multi family units and then rely on the cash flow as passive income. 

Maximum Purchase Price Formula:Purchase Price = After Repair Value - Buying Costs - Holding Costs - Selling Costs - Repair Costs - Repair Contingency - ProfitExample:  ARV: $200,000Buying Costs - Perform a detailed calculation of Buying costs Brokerage fees, inspection costs, appraisal fee, title costs, lending closing costs & points, etc.Buying Costs: 1 to 5% (depends on closing costs/points required up front)Holding Costs - Multiply your monthly holding costs by your holding period Loan payments, property taxes, utilities, insurance, HOA dues, maintenance, etc.Typically, 2 to 6% (depends widely on financing/loan payments & length of holding period)Selling Costs - Perform a detailed calculation of Selling costsRealtor commissions, seller assisted closing costs, brokerage fees, home warranties, title costs, etc.Typically, 6 to 10% of ARVRepair Costs - Walk the property and create a detailed scope of work of what needs to be repaired, replaced & remodeled.