If it's "Bad", then multiply $10/sf. by the square footage of the house, and there is your repair estimate.

# of Units32Rent per Unit$485Gross Rents$186,240Other Income$0Gross Potential Income (GPI)$186,240Vacancies Assume 10% vacancy rate $18,624Effective Gross Income (EGI) $167,616# of 4-Plex8Price/4-Plex$120,000Sales Price$960,000Acquisition Cost Assume 20% down pmt + 5% other$240,000Property ValueNOI/(Desired Cap Rate)$931,200Operating ExpensesRule of thumb is 50% of Gross Rents (assuming tenants pay utilities) $83,808Capital ExpensesUnknown (owner says 0$)$0Net Operating Income (NOI)EGI - Expenses$83,808Debt Services$75,396TaxesAssume 1.25% of property sale price $12,000Insurance Assume 1% of property sale price $9,600Net Cash Flow-$13,188Debt Coverage RationNOI/(Debt Services) 1.11Capitalization Rate (Cap Rate)NOI/(Sales Price) 9%Gross Rent Multiplier (GRM) 5Cash-on-Cash Return (CoC)(Net Cash Flow)/(Acquisition Cost) -5%

(Sidenote: Multiply by 12 to get annual NOI, then divide by purchase price to get the CAP RATE - another very important measure.)Separately from that, you have to consider what the debt load will be.

Find the marketing techniques that you have been successful on and multiply.

A general tool is Gross Rent Multiplier (GRM), not very precise but handy when doing a quick value assessment.

I am confused on what number I am multiplying the 65% or 70% to.

I understand that's a wide range, especially when you multiply by 4.

There is a pretty popular podcaster who also has a free ebook and does webinars, etc (and who I'm not referring to by name on purpose, since he doesn't pay me to advertise for him) who once said on his podcast to figure rehab costs by multiplying ft^2 by $10.00.

I write the whole process in an earlier post in this thread, when I initially had a contract, it had no mold, and when they had to re-foreclose due to their closing attorney waiting till the last minute to correct a technical error, then didn't pay the electric bill for six months while they wait for the process to get sorted out, no air conditioning indirectly caused the mold to multiply.

All links are from here: http://www.biggerpockets.com/articles/category/property-analysisCap rateUnderstanding Cap Rates (Capitalization Rates)Sq/Ft compareables, price comparablesEstimating Price Without Comparable CompsGRMGross Rent Multiplier - I read about this hereFor my current abode:Duplex, Purchase price of $260k, half rents for $1000/month130k acquisition (half of the property) 12k annual rent = 10.83 GRM for meThis property is my home and this is just an offset.