I first look at the list price, then I find the fair market value of the property in that area based on sales records from the past 6 months, finally after getting the average price of the comps/ sq ft, I multiply that number by the actual sq footage of the property I am analyzing to get my FMV.

You would then multiply that by your municipalities millage rate. 

This is for non-owner occupied investment properties that you've owned long enough to appear on tax returns.Rent is simply rent on Schedule E divided by fair rental days in the upper right corner and multiplied by 30.

Finally, I multiply the monthly cash flow by 12 and then divide it by my expected initial investment. 

If they are rentals I would use gross rent multiplier.

I forgot to multiply that rent by 12 to get the full year income.

Purchase Price: $260K Downpayment: 3.5% via FHA loan = $9,100Closing Costs: $7,800 (Asking seller to pay)Rehab: $0 (House is in excellent condition, with limited/no rehab/upgrade potential)Total Cash out of pocket: $9,100Annual Rents: $36,000 (2,200/mo from house [utilities included], 800/mo [8 nights/mo] from Airbnb = 3K/mo)PITI: $19,417 (30 year fixed @ 5% - estimate, need to find a lender)HOA: $2,328 (includes cable)Utilities: $5,160 (Electric, Gas, Water, Trash, etc)Other: $6,120 (6% Repairs, 6% CapEx, 5% Vacancy Rate)Cash flow: $4,775 ($398/mo)Cashflow Margin: 13.3%2% rule: 1.15%50% rule: 41.8%Cash-on-Cash: 52.5%Cap Rate: 8.1%Gross Rent Multiplier: 7.22Debt Coverage Ratio: 1.3Thoughts?

This is something I am still trying to wrap my head around, but in my recent research, since they are SFH, you will have to multiply all of the estimates by 5.  

Well, I have to say that knowing your numbers and trusting yourself really pays off, even if you have to face an avalanche of naysayers in the process (our friends and family all thought we were crazy).

I know some that will base it off of your assets and then attach a multiplier.