Hey Jon great asking questions on here, remember the only STUPID questions are the ones never asked..The cash out refi programs are leveraging 70-75% of the appraised value so when you are finished with rehabyou will open it back up with title to have the property refinanced with a lender at which time you will pay between 400-700 dollars for a 3rd party non affiliated appraisal company to appraise your property (always run tight comps, if the house is brick and 2 story then find other houses that are the same in the same area that have sold within 6 months if you dont have access to good comps ask 3 different realtors to run CMAs on your property and get the avg and multiply that average by 90%)once your property is appraised you will go to close with the adjusted amount from lender to meet the qualifying coveragefor instanceyou are ALL IN for 120k (also include all carry and closing costs) and you find a lender that will cash out refinance (or not cash out different states have different % lending stipulations) at 75% LTV your property gets APPRAISED at 150k that means the lender will lend you 75% of that number which is 113kso you will NEED to to come out of pocket to finance the difference of 113k and 120k plus closing costs in orderto keep the property. 

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 👍

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?

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.

Using a cap rate or a gross income multiplier leads to valuations that are crazy outrageous and just cannot be accurate in a market where real estate trades around a 3-6 cap, and a 166 - 200X monthly GIM. 

Typically you'll just take the gross rent yield and cut it in half to account for all expenses including property mgmt (multiply gross yield by 60% if you'll manage it yourself).Now layer on the benefits of the 75% leverage (loan).

2% rule would have this at $182500 max; basically multiply total monthly rent by 50 (or divide by 2%).