When you multiply the ARV times .65 you will get a “number”.

If you have solid credit (700s), a decent job post-graduation, and about 5% saved up of the approximate home you want to purchase (multiply your salary by 4 as a conservative estimate as what you can afford), then you should be able to purchase a househack post-college.I would keep pushing for savings in that range so you can put 3% down for a property (first time home owner, conventional or FHA), ask for 3% back at closing, and budget 2-3% for closing costs.

I'd find some info, but also more terms I didn't know like NOI (Net operating income) and CAP (capitalization rate) and GRM (gross rent multiplier), ROI (return on investment), ROE (return on equity), DTI (debt to income ratio), DSC (debt service coverage) and so on.

The bold figures above is all you need to apply this rule of thumb to:Estimated Gross Operating Income (Rent/Month): $1,200.00Now take 1,200 and multiply it by 50% (0.5) which will yield you 600.1,200*(0.5)= 600 This will factor all of your expenses tied into the property such as management, vacancy, depreciation, taxes, insurance (as noted above with my calculator).Next you will take 600 and subtract debt service, which is your monthly payments towards your loan:Mortgage Payment (Month): $454.49600-454.49= 145.51 Cash flow/monthThis last figure is the conservative figure you will collect after everything is all said and done, which is your cash flow.

But when you multiply that by 17, its awfully fun to see.

With this much leverage, your Debt Coverage Ratios can potentially get very thin, and multiplying this across an entire portfolio of properties financed in such a fashion, the risk is very high that a confluence of issues with the economy/rents, large capital repairs, high vacancies, etc., can bring down the house of cards and ruin your credit for a long time.Personally, I've not wanted to put on any financing where the DCR is below 1.75 (50% of Gross Rent, minus P&I), or where the indicated monthly cash flow is less than $175/mth on SFRs.

In your neighboring state of PA, if you did that you would be paying the real estate transfer tax on imputed fair market value (actually done by multiplying the tax assessed value by the state's fudge factor for the county, but that is just the technical way they get the market value).

If you get a contractors estimate, multiply it by 1.5.

Annual Projected Operating Data- APODEstimates cost, gross income, gross operating income, net income, cash on cash, cap rate, gross rent multiplier, etc. basically one sheet with all projected data.

I joined the other day, and pretty much instantly signed up to be Pro because, hey, $15 a month is something I'd multiply by 10 if I knew that my education were getting advanced by reading, if my colleague pool were growing due to spending time and energy cultivating it, and if my chances of say, getting a property here locally under contract and then shopping around for an investor interested in moderate return, were increased.