It is not the arithmetic mean, because what these numbers mean is that on the first year your investment was multiplied (not added to) by 1.10, on the second year it was multiplied by 1.60, and the third year it was multiplied by 1.20.

I've done some research on prices in some of the areas people talk about on here where monthly gross rent multipliers are as low 30-50.

You multiply by 3 because you're leveraging 3 times as much borrowed money as your own personal capital.

Also, there is something called the "common level ratio" (CLR) that is to be applied in establishing the FMV based on the assessed value (and also gets used in going from FMV to come to an assessed value); this factor varies by county and by year - see this link:http://www.portal.state.pa.us/portal/server.pt/community/realty_transfer_tax/11417/common_level_ratios/580584Take the assessed value, multiply by the CLR, and you get the FMV.

You should then multiply that by what the typical rehabber is looking for in your area, let's say they want to get it for 75% minus repairs. $200,000 x 75% is $150,000.

Multiply that percentage by your $250K purchase price to determine how much of your condo purchase price to allocate to the land.If you can't get the assessment from 10 years ago, use the current tax assessment in the same way.

Hi Lee-There are many ways to evaluate properties, the 'gross rents ratio' or 'gross rent multiplier' is one of them.

After you get that number ARV (after repair value) multiply by .70 and minus estimated repairs.

Multiply the risk of doing a residential deal by 10 with respect to commercial properties.

Then multiply by 2!