Next, decide if the city (where the subject property is located) is very competitive with a lot of investorsmaking offers; or, an ideal market where there are many potential deals with few investors making offers.Next: In a competitive market, you may want to multiply FMV by .70 or .80, then subtract rehab costs, along with the amount you want to make.

The Roth IRA has a high yielding portfolio of small, short term loans that enables it to multiply its tax free earnings over what it could earn in deposits or in the stock market with virtually no effort and limited risk.

The realtor analysis projected “repairs/maintenance” in the “other expenses” category at $157/month based on $500/yr from actual maintenance for the past 2 years, but I thought this was really low, so I multiplied it by 4.

Take the $5,000 number and multiply that by the number of homes that are salvageable to start with.  

I'm sure you can find someone to disagree with me but if I had 200-250k I would not park it in a 20% down payment situation when I could use it to multiply that amount elsewhere.AND - why would you want to spend 200k as down payment on a 1M property just to turn around and still have to rent a bedroom out and have to live with someone else in YOUR home???

Rehab costs can be roughly calculated by multiplying the home's square footage by $20 for a no frills rehab.

@Christopher Collins Personally I am not a big fan of Gross Rent Multiplier ("GRM").*** GRM is strictly a function of Revenue, where as Cap-Rates (my preference in evaluating a deal) takes into account Operating Expenses ("OpEx").I think this is especially important Connecticut where OpEx can be high because of 1) high taxes [especially in Bridgeport], 2) the majority of properties are old (requiring more for both reserves and ongoing repairs), and 3) the high cost of labor/service contracts in the state.That being said - and somewhat contrary to the above - many commercial brokers in CT of mid to large multi-families typically trade properties on a price per unit basis (and the price will fluctuate depending where in B-port).

The formula is my attempt to account for the fractional part of the credit score and emphasize its importance to the cumulative score  - some examples using 2000 for simplicity are:  Income Rent Multiplier Score Normalized 4000 2000 2 4.0 2 Rejected 4500 2000 2 4.5 2.25 Rejected 5000 2000 2 5.0 2.5 5.0 Added to Total Score 5500 2000 2 5.5 2.75 5.5 Added to Total Score 6000 2000 2 6.0 3 6.0 Added to Total Score 6300 2000 2 6.3 3.15 6.3 Added to Total Score I will create a spreadsheet to calculate total score for this once finalized and provide to anyone interested.

(Then, multiply that out by the millions of homes that end up becoming short sales)!

100k could be multiplied into perpetuity with the right mindset and strategy.