I'm assuming it wouldn't work to just multiply the per room rate by three. 

Ask for his schedule c to see what he's reported to the government and call the utility companies yourself to see if they will give you an average cost monthly then multiply that by 12 for your annual costs.  

Multiply this simple deal by thousands, and the total bank assets is reduced considerably and the health of bank doesn't look as good and may not pass the test by Feds.Just my thoughts.Rich

Here are a couple of numbers I use -- and many other investors too -- although others may prefer to tweak the percentages a bit for their style or individual market.Flips or rehabs --  Take the After Repair Value of the home (ARV) and multiply it by 70% and then subtract the rehab.

With a single piece of property, given time and proper management, you can build value like an avalanche thundering down a mountain.

Gross Rent or Gross Income Multiplier to assign value? 

@James M.Everyone's tax situation is different and likely why income taxes are not factored into rental calculators.With that said you can roughly estimate your taxable income from rental activities asProjected Income less projected cash expenses(not including principal) less depreciation multiplied by your federal and state tax marginal tax rate.

If so, simply multiply the salon’s expenses by 3.

If you can find out what they rent for nightly throughout the year and then multiply it by the yearly occupancy rate you can get a pretty good idea of the yearly income.

Anyway, after multiplying that by months and years, it really looks like a great opportunity for an awesome return.