.: $150 Total Expenses: $1250 NOI: $1,930CAP: 3.9%Rent Multiplier: 16P&I: $2,435Cash flow: -$505I estimate the rent's are low by about $200 to $300 in total - the lower unit seems particularly under-priced. 

Multiply that concept times all the building components and you can see how quickly cap ex adds up.

The good thing about this is that I can sell one off if I want to later but for now I have to get 2 of everything.Here is the deal just for one unit (the details are the same for both): Purchase price: $95,000No repairs needed (current owner is taking care of the big things found in the inspection)Current tenant pays $925/monthAssuming 5% vacancy and CapExAssuming 8% repairsInsurance is $95/monthTaxes are $153/monthWith a conventional loan of 25% down and a rate of 4.38% here is what the calculator gives me: NOI: $6,128.48Monthly Cash Flow: $154.97Total Cash Needed: $28,590COC ROI: 6.5%Pro Forma Cap: 6.14%Purchase Cap: 6.45%50% rule monthly cash flow: $106.76Income-Expense Ratio (2% Rule): 0.93%Total Initial Equity: $23,750.00Gross Rent Multiplier: 8.56Debt Coverage Ratio: 1.44%Is this a good deal?

Yeah proceed with the deal, but if property has structural issues, multiply that cost by 2 and ask the seller for reduction in price.

Multiply the ARV x .65 = 65% of ARV Then subtract cost of repairs from the 65% = max purchase price Thanks

Call local vendors and ask what they typically would charge for a roof. a rule of thumb for repairs take the square footage and multiply it by 40.

Based on 20% down, and extremely conservative appreciation forecasts, initial returns start around 30% and increase every year.Depending on the market conditions, we would refinance each property after 3-5 years and use proceeds to purchase additional properties - creating a multiplier effect on returns.We plan to move slowly into rehabs in 2016, but would convert to rental rather than flip to avoid ordinary income tax.

What is a gross rent multiplier?  

One day my stepfather showed me the properties he owned and the profits he made from them and after reading the book "Rich Cap Poor Dad", I knew I had to multiply my income sources somehow.

In Illinois you will see a better gross rent multiplier, but thats because taxes are higher, its more tenant friendly and people are coming to the Iowa side.