Get a property inspection done, and get multiply quotes on the rehab itself.

#3 as you describe it might also be gross rent multiplier or GRM.

Now that it is cash flowing nicely, I'm considering adding another property to my portfolio using leverage.I was very happy with the gross rent multiplier I was able to get my first house, however, I do not believe I will be able to get much capital appreciation from the property - I do not plan to sell and I think I will be able to get out for what I have in it, but I don't think I would be able to get much more than that.Here's my question.

Your LTV multiplied by your annual constant must be lower than your capitalization rate to get positive cash flow.

Basically, you take the ARV multiplied by 70% ($100k x .7 = $70k), then subtract the estimated repairs, $15,000 from $70,000 to arrive at our final Maximum Offer, $55,000.

We have found that in our area Cyberhomes is usually fairly accurate, but you can not take that as gospel, since they do not necessarily use like COMPs all the time in their formula.Once we have all of the COMPs in a 1 mile radius over the last 3 months, we average them, subtract what we feel repairs will cost, then multiply that by 70%.

All this, when federal workers are multiplying like bunnies!

After selling this property i'll be armed with about 240k in cash to go out and find a DEAL on another property.I told myself the next property I buy I would not pay more than about a 72 gross rent multiplier.

These are retail values, so you would want to probably multiply these by .60 or so to see what a wholesaler might offer.

Multiply that times the number of deals you do a year.