Now multiply that by 3 strangers in your house ....good luck with that.  

They multiplied what they received.

Multiplied by 3-5 bedrooms and that gets real expensive. 

Multiply that by 10 total rental buildings, and you can see the premium jump significantly for your overall portfolio ($3k in this scenario). 

Time is the ultimate multiplier of wealth.

You then multiply that by your anticipated net profit per month per rental to determine a monthly income and see if you can live on that.  

Properties that grow significantly in value provide the equity and leverage needed for future investments, which can multiply your returns over time.

We use a 2.5 multiplier.

For market pricing, I collect LTR data from BP rent calculator and multiply by 1.5x.

Real estate's "gross rent multiplier" is Wall Street's "sales to revenue",  "cap rate" is roughly "P/E ratio".When evaluating markets and investments I tend to start with GRM (or lazily the 1% rule), then attempt to return a cap rate based on assumptions about costs, then I work my way to multiple years of projections (assumptions about inflation, amortization, tax benefits, etc), and if I am partnering with one of my smart friends I have to pull up an IRR (internal rate of return).I also look at regional employment levels, median income to rent ratio in the zip code etc.