A Gross Rent Multiplier(GRM)<10 is certainly one way to screen properties along with cap rate, 50% rule, 1% or 2% rule, and a whole host of others.

December 2014 probably means that your FHA MI rate is 1.3% or more. 3.625 + 1.3 = 4.925%.My memory isn't perfect and FHA MI changed right around Jan 2015... to figure out your FHA MI rate, multiply the monthly MI payment by 12 and divide by original loan amount (see, mortgage math isn't so mysterious after all is it?).

Marquell Jones also may I ask how you came up with $20 multiplying it by the sq ft to equal your repair cost?

Why is it that we say rents received from the property equals only 2% of the purchase price instead of multiplying the number of units in the property by the amount of average rents to determine the approximate amount of rents that will be received?

Understanding discounting methods, IRR valuations, and financial metrics will be paramount in effectively multiplying his dollars. 

Just read an article today saying that you should NEVER buy any income producing real estate that does not have a Gross Rent Multiplier (GRM) of more than 8.iow, A property renting for $1,250 a month, or $15,000 a year should be purchased for no more than $15,000 X 8 = $120,000.I've NEVER been a big fan of GRM! 

Once you know the property after repair value (ARV) then you will multiply that number by 70% and then estimate the repair cost of the house and subtract the repair cost from the 70% number.  

That rule says that you start with the After Repair Value (ARV), multiply it times 70% and deduct the repairs and your desired assignment fee to determine your maximum allowable offer (MAO).Your best strategy at this point is to build a database of all real estate investors in the area to which you can market your deals.

The database lives on one of my computers (which is multiply backed up by Time Machine, Backblaze and a mirrored drive).  

This is due to the fact that he can easily take his money and multiply it by 10 on a whim.