He’s multiplying 10x600x12 and he says it’s 84,000.

Once you're comfortable with the total gross rent you can charge, multiply the total monthly rental income by .95.

Next it comes down to the lot dimensions, 1-4 units need to have a minimum of 360 sqft. so multiply your lot dimensions if they come out to over 720 you can have 2 units, 1080 for 3 units, and 1440 for 4 units.

Determine a price per square foot and multiply that into your property. 

. ($80k renting for $1200 vs $40k renting for $800 multiplied by the ratio above vs boring consistency of the nicer area) Oh and I have zero excitement for apartments.

Debt to income ratio is great because it determines what a healthy overall monthly payment should be.If you make $4,000 per month ($48,000 per year) and you are buying a 4-family with potential rents of $1,000 from each unit, you have $3,000 in income and you will be occupying one unit.You then multiple $3,000 * 75% = $2,250.Add $2,250 to your income of $4,000 = $6,250.Multiply $6,250 * .55 (max DTI for FHA) = $3,437.50That is your total debt payments you can have on a monthly basis.

If you choose not to use financing/leverage you are choosing not to use one of RE investors bigger return multipliers.  

Let's use $1,000 just as a base number for a Cost seg study just because we can multiply it easily. 

You can get cash back instead (although the travel is a higher multiplier on your points), have your points pay your credit card bill, etc. 

So it looks like if your shopping at a multiplier of median home prices, yup, that inventory is finally not below the threshold for shortage.... by 0.2mnths supply....