They're townhome style, so each unit can be bought/sold separately, with separate tax codes.Here are the stats:3 units, 3 beds, 2.5 baths eachBuilt in 1984All currently rented (don't have actual rent amount, but I asked a property manager in the area, who said she can rent it for 795 - 800 a month each)Gross Rent: $2385 (795 * 3)The numbers:Monthly Total Operating Expense: $1050 ( 5% vacancy, 5% repairs & maintenance, 5% cap ex, lawn care, 150$ insurance --guesstimate, 10% property mgmt)P&I: $620 (20% down ($30,600), 4.5% interest, 30 yrs)Estimate $1000 in repairs (we haven't seen the inside), total investment including closing cost comes to $36,190NOI $16,123Cash Flow $8,681Cash ROI 24%Cap Rate 10.54%Gross Rent Multiplier: 5Monthly Cash Flow per Unit: $241After all the learning I've done with the help of BiggerPockets, I want to make sure my numbers make sense and I'm not missing anything major.

I then multiply the total estimated rehab costs by 1.05 or 1.10 just to have a little wiggle room!

Eric Schrader I would recommend you lookup how to use a Gross Rent Multiplier calculation.

============================================Here is the sellers listing: Asking Price $290kProjected Annual GROSS INCOME $57,000 Projected Annual CASH FLOW $28,296 Projected CAP RATE 15% Projected GROSS RENT MULTIPLIER 5.26 Projected CASH on CASH 47% Projected CREDIT LOSS ESTIMATE 3.6%Plumbing / electrical / HVAC has received updates.

Eager to learn and be proactive watching my money multiply to passing my knowledge down to my generations.

I'm going to ask what might be seen as an impertinent question here, so feel free to give generic answers (or no answer - I'm not looking to make anyone upset.)I see a ton of big numbers thrown around on the BP forums (buying 350 properties during a downturn, owning 500 properties, etc.) and while I think some of the "Internet Law of Averaging" may apply (i.e. take reality and multiply it by as much as necessary to make it sound impressive) I get the impression there isn't a ton of that happening here.

I multiplied $655 x 4 units) Property Taxes - $100/month or $1200/year (This is from the MLS.

The 50% guideline is new to me, so I was comparing with other known indicators such as ROI on cashdown, Gross profit multiplier, Net profit multiplier and such.

Fueled by easy-lending standards for investors, speculators helped drive up housing prices in certain markets.Historically low interest rates that ensured housing prices would rise more quickly than income levels as consumer dollars stretched further.The failure of rating agencies to actually research and rate the safety of mortgage securities, and their unwillingness to act once the problem was apparent.The Federal Reserve’s unwillingness to stop lending that could jeopardize the economy (even though they had the right to do so).Rampant cash-out re-financing that made homes “ATMs” for consumers who wished to purchase what they could not afford.Fiscal policy built on the assumption of never-ending home appreciation, and the dependency of jobs and consumer spending on never-ending home appreciation.A derivatives market which multiplied the amount of money at risk beyond the value of the underlying assets.

total 21,977NOI =  29.6k   I need to get the multiplier, but assuming 10% you have a value of 296,000.