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. 

If the liar loans, high LTV and resetting ARMS started the foreclosure avalanche, it is still being fed by resetting ARMS plus rising unemployment rates.

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%).

For properties in general, the easiest way to estimate taxes is to multiply the assessed (or anticipted reassessed) value by the net mill rate, currently 2.997%. 

Let's say the GRM (gross rent multiplier) was 100. 100x50= $5000 adjustment in the sales comparison approach.

When determining the net income, I simply multiply gross rents by an expense ratio to determine the net income.

Anyone on here use any advanced mathematics during deal analysis like determining rent increases, such as using Lagrange multipliers on a constraint curve of a function of price and vacant to maximize profit.

Now multiply that by a lot of houses and you can see even sub too foreclosure rescue to do right you need minimum 100s of thousands to millions of dollars in cash to make it work.. can U do one or so sure.. but a ton of work just to capture some equity.. in our case it was either make a business out of it and do volume or just pass on it..