The book explains the Gross Multiplier, but it does not teach the math to project the profits you can earn by increasing rents over a number of years and then factoring in the profits from both rents and appreciation.

no necessarily you have to us a .70 multiplier. you can try on .75 and .80  and you might be able to get away with you target profit.. if you manage well your rehab .. 

Use the counties actual county tax rate of 1.1% (minus $692 if owner occupied) multiplied by the sales price to get your likely taxes on the property when it gets reassessed. 

Many investments have the power to multiply your wealth over time, and real estate is one of the best.

(take your limit and multiply by 30%  Ex. 1000$ x .30 =300$ A month)Remember!!

expenditure minus income, then that number multiply by 12

To find your ROI, multiply that by 12, and divide by the acquisition cost.

A typical loan requires a down payment of 20% - 25%, so take your savings and multiply them by 4 or 5 to get your max purchase price.

@Myrna Santos, if you multiply your current savings by 28.57, theoretically, THAT'S the value of property you could afford to apply for under FHA-approved owner-occupied Lending guidelines*.* (I'm not sure of extra reserves they also force you to set aside, which could change the multiplier).ie.

I've been trying to get a hold of all the necessary REI jargon and am doing okay (I think), but am somewhat confused by two terms: Cap Rate and Gross Rent Multiplier?