Your income from just the 180K cash could be around $2,000/Month if you multiply the results over 5 houses.

Of course you're also multiplying the number of problems as well.Thanks everyone for the feedback.

I multiply that value by 0.7.  

Then take that # and multiply by 1.25 and you've probably got a good rehab cost #.  

Why is the ARV being multiplied by 70%?

Multiply your average $/Sqft by your properties size and that will get you close.

Flips are a great way to multiply capital, even a better way of creating capital (by using all hard money).

For example, if a triplex sells in West Oakland for 700k and is pulling in 36k per year in gross rental income (1k per unit, far below market), the gross rent multiplier is 19.5 (pretty high).

@Liam Morris - Josh and Brandon aren't talking about taking 50% of the Cashflow - they are talking about taking 50% of the gross rent - say $2,000 multiplied by .5 gets you $1,000.

I can add/subtract/multiply/divide.