I’ve come across he formula for dealing with Gross Rent Multiplier, which is the selling price of the property/gross rent per year. 

I don't currently have the capital so I'm spending my time educating myself and saving every dime and investing what I save to multiply it.

If there aren't comps there I personally would value the property relative to its potential rental income using either the gross rent multiplier or cap rate method. 

$280 a month multiplied by 12 is $3,380.Sometimes it's better/easier to see the gross number.

We have used this to grow some equity and then sell, get the gains tax free, and multiply the money using down-payments on a couple other rentals. 

I was able to put away about $30,000 in a single year saving every extra penny and living like a hermit, but that would have only bought me a class D house in the ghetto even here in Omaha.Leverage is not the enemy, it is a force multiplier and while I appreciate the success that one person had without leverage, we should not demonize it and act as though that way is somehow superior.

If I owned a truck right now that expense is multiplied 10fold  because it's a specialty job and truckers get milked hard.

Hey Rashaniqua- I'd recommend using the average price per square foot of the homes that sold in that area and multiply it by the number of square feet you have.

The IRS is sometimes *very* slow to move; but once they move it's like an avalanche and you don't want to be on the receiving end of their collections arm / prosecution arm.

The second part is the average selling price for a 3 unit during the last 12 months.The final part is the "Gross Rent Multiplier" (GRM).