Your “overhead” costs to buy & sell the house + holding costs, interest, property taxes etc, luckily these can be pretty easily calculated, many websites like closing companies will have websites where you can fill out information about a property and it will tell you the costs to buy & sell, loan costs are easily calculable, take your purchase multiply by intrest rate divide by 12, that’s your monthly expenses multiply by the number of months you project the to complete, a good rule of thumb is even cosmetic can easily be 6 months anything more complicated can be 9-12 though all that can very greatly.3.

Your purchase price was 15.6x the annual gross income, so this property sold at a 15.6 gross rent multiplier (GRM).If you do the renovation and add the ADU, the property will generate $13,400/month ($2200 + $2200 + $5000 + $4000).

In LA, when we're assessing small multifamily, we usually look at the gross rent multiplier (GRM) instead of cap rate.

The assessed value is then multiplied by the local tax rate to calculate the amount of property taxes owed.I’m sure you may be wondering why commercial properties tend to have higher tax rates.

Your returns on market appreciation are MULTIPLIED because you are buying the investment with leverage (a loan)!

Managing gratification, expectations, and keeping yourself covered(insurance, cash, protection, no debt) will allow you to take risks that will make your NW multiply. 

We evaluate the after-repair value using a gross rent multiplier and a NOI/cap rate model. 

I don't think multis are any better, just multiplying the problems by 4.

That means in this case you would need to translate that "5" into actual dollars of cash flow per month, then multiply by 12 for the year.Now divide the cash you put in (actual cash, not the percentage) and that will tell you how long it will take you to recover your cost, and where that "cash flow" is now real, and not just a recovery of cost.So, on these cash flow deals (especially the ones you put in 30% of the purchase price), how long will it take you before you recover your cost (the cash you put in,...the DP)?

Chris Prefontaine secretly records calls of home sellers without them knowing in multiply States and PRETENDS to be a home buyer from PrePropertySolutions on behalf of his students, who have a completely separate LLC's, so that Chris Prefontaine has zero liability!