I tend to use a gross rent multiplier instead of cap rate since the math is easier, a 50 GRM is the same as the 2% rule.

Therefore, you would multiply by 0.7 in order to get 70% of the total revenue which would be your NOI.

“A good rule of thumb that I use to start with is that I take the number of occupied spaces and multiply this by the average monthly space rent and multiply this by 70 (The "70" number is an arbitrary number based on my experience in evaluating deals).”

Otherwise they have to live with it.We had one guy that owed $2800 in back rent then abandoned the wife & daughter & moved in with the GF & told us "to go forth & multiply".

Talk to the guys at multiply - Melbourne.They will be able to help .I was thinking to invest in Melbourne too but I’m finding it over price so I’m thinking to invest in Brisbane.You can invert maybe $700k in Melbourne but won’t be in the blue ship suburb 👍

3) BRRR'ing single family home has a 1X multiplier - you have 1 unit and you profit from the increase in value of that one unit.With apartment buildings, when I do a value-add, the increased income is increased EXPONENTIALLY.

Do you think an appraiser would just use a 3/2 SFH as a comp or might they just use some sort of gross rent multiplier?

They are using you, grinding down on you, really with fractional reserve they are taking advantage of you, so yes use them, with respect and minimally and where you don’t have a lot of risk of paying them off because your asset is a fat cow paying you more than plenty for the minimum payments even in hard times because the rents don’t go down that much in recessions, but then get out from under them ASAP and start putting your own low risk returns into your own pocket.In decision theory you multiply all the outcomes by their probability, and the expected outcome is the sum of all the probability-weighted outcomes.

Your Mentor (he or she may not see them-self as a Mentor - but a teacher, a partner - an opportunity to make more deals - a way to multiply their income).Become a Locator (also known as a Bird Dog), get into the market, go to auctions, talk to title company associates - agents and hard money lenders.What you want to know is who is THE MAN!

GRM method looks at the gross revenue and multiplies it by an appropriate coefficient, called multiplier.