*quickly multiplies purchase price of my STR by 0.15... okay cool, I'm good*Agree with what others said.

I like how you can put more units onto one piece of land which can multiply your returns when done right.

In some markets that are landlord heavy, we'll take the Zillow or Rentometer average rent and multiply that by 54-57 then subtract our wholesale fee to generate an offer.

Those are all great tactics, I love how number 1. takes the money you have have available and multiplies it exponentially to be used into other properties, super smart!

Don't know if this has been converted (probably not) but yes we suggested using similar 1 unit SFR comps with a multiplier of some sort.  

Earned wealth in the hands of someone who worked hard to get it multiplies easily and it's only put into the hands of "active" partners after much due diligence.Contrast that with the ultimate passive money - the lotto. 

Now, multiply that by the number of properties you have and this could be significant.

Joe,As long as you have a scope of repairs, can use a tape measure and can multiply you can get a HomeTech book (google them, no available in stores) and use it to get a bearing on your estimates.

I have typically seen expenses run 35% of gross rents so I multiplying gross rents by 50% is a very conservative estimate.

I have used both the "50% expense" formula as well as the rent multiplier -- I know rents = 2% gives VERY cheap number, but 1.5-1.75% gives an number with 20% of asking price on a lot.