It has illustrations on electrical, hvac, plumbing etc. 

From experience, there is zero money to made this way. 1) you'll need to screen them to make sure they even qualify to rent. 2) you'll have to show them units until them find one they like. 3) nothing is stopping them from finding a place on their own. 4) as I illustrated above even if your successful the payoff is minimal. 5).

Just remember that the GRM is but one metric that is useful for performing initial triage on a property, but insufficient on which to base a purchase decision.As an illustration, we looked at two small properties recently, both bring in approximately $3500/month ($42000/year) and both were priced a little differently: one at $200K the other at $240K ... yielding GRMs of 4.76 and 5.7 respectively.However, when you looked at operations, the first business had an operating expense ratio of 82-83% (central boiler, landlord carrying electricity) while in the second property, the tenants were carrying their own electricity but there was still central heat and DHW for a operating expense ratio about 20 points lower around 63-65%.The result is that the higher GRM property produces 2.3 times as much net income as the lower one.

A typical PM will charge 15% (8-10% management + ~5% extra "junk" fees for re-lease, maintenance, etc.) of your GROSS rents, which if you believe in the 50% rule (which you should not, but for illustration's sake) then that is 30% of your NET cash flow, and that is if you own the property outright ... if there is a mortgage payment then that percentage of your cash flow that goes to the PM is even higher.

That's why these calculations are important.Michael Evans I believe you are accidentally illustrating the point in the danger of isolating a favorite calculation and basing a purchase decision off of that vs taking a few sides and comparing them.

@Ather RizviIn real estate investing there are multiple ways to go about it as you clearly illustrate. 

As other agents have illustrated, the Broker does not have an obligation to present if instructed not to do so. 

This is simply to illustrate the equity concept.

Just illustrating that, at this stage in the market, buying for cash flow (assuming you can get it) is a less risky strategy than buying for appreciation.  

Ignoring desire for profit for the sake of illustration, that means you're willing to pay $250K.If the bank is asking $275K, you want a 9.09% discount.