From past multifamily I've looked at in California investors typically put weight to the gross rent multiplier and cap rate, as long as the fundamentals make sense.

Gross rent multiplier 7.8. 

If you're a passive investor and don't care to have free capital to work with, leverage and multiply, I would argue the 1031 exchange product is just fine.

Although the net income earned from a property will vary with each owners specific circumstance, you want to multiply property's net income by 59.01 to have an idea what the price range should/could be in.Obviously this is only as correct as the market signal is and assuming that investors are acting "rationally" when buying and selling at current prices.

On-site Maintenance.Unit breakdown:16 - 1 bed/ 1 bath --- $600 month a year lease, $650 month w/6 month lease and $700 month72 - 2 bed / 2 bath --- $700 month a year lease, $750 month w/6 month lease and $800 month16 - 3 bed / 2 bath --- $800 month a year lease, $850 month w/6 month lease and $900 monthDeposit same as lease and Pets have $500 deposit for 1st and $250 for 2nd with 2 limit max and 30lb maxNumbers breakdown that are provided (assuming not actual number) Acquisition Costs Purchase Price, Points and Closing Costs $8,944,500Investment - Cash $1,824,500First Loan $7,120,000 Investment Information Purchase Price $8,900,000Price per Unit $85,577Income per Unit $8,618Expenses per Unit ($2,229) Income, Expenses & Cash Flow Gross Scheduled Income $896,255Total Vacancy and Credits ($8,736)Operating Expenses ($231,861)Net Operating Income $655,658Debt Service ($529,074)Cash Flow Before Taxes $126,584 Financial Indicators Cash on Cash Return Before Taxes 6.94%Debt Coverage Ratio 1.24Capitalization Rate 7.37%Gross Rent Multiplier 9.93Operating Expense Ratio 26.12% ANNUALIZED INCOME Description                                               Actual               Market Gross Potential Rent                              $873,600         $873,600 Less: Vacancy                                         ($8,736)              $0Misc.

For FHA it is currently always 0.85%.For conventional, it can be as low as 0.41% and as high as 1.5%.Multiply the monthly dollar amount you are quoted by 12 and divide by loan amount to back into what your mortgage insurance effective interest rate is, assuming you are working with one of the 95% of loan officers that will refuse to ever outright tell you this number directly.

For myself it's just a multiplier, 1 MN deal is like 2/3 OH deals.

I narrowed it down to multiplying the Price to pay for the house and multiply it by .007%.Assuming a $100,000 purchase Price for the house x .007% = a $700 monthly mortgage paymentDoes this seem accurate as far as a Formula goes to figure it out?

Multiply that $4.8 million by 6-8 because of that many times more doors and you see the wealth generation.Many investors will just keep flipping to larger and larger complexes to get there.

@Jim PellerinThank you for your response Jim and also thank you for the link.I'm new in the commercial world and what I meant is, I'm looking for the formulas that technically helps me to calculate all the necessary numbers, like Gross Rent Multiplier, Cash Flow, Gross Scheduled Income, Operating Income / Expenses, Cap Rate, Equity Build Up Rate, etc.When I get the rent roll and income statement about a property with all the numbers in it, I need to calculate these important things to see if I should moving forward or not.