Real estate's "gross rent multiplier" is Wall Street's "sales to revenue",  "cap rate" is roughly "P/E ratio".When evaluating markets and investments I tend to start with GRM (or lazily the 1% rule), then attempt to return a cap rate based on assumptions about costs, then I work my way to multiple years of projections (assumptions about inflation, amortization, tax benefits, etc), and if I am partnering with one of my smart friends I have to pull up an IRR (internal rate of return).I also look at regional employment levels, median income to rent ratio in the zip code etc. 

@Chris Seveney Hey Chris, Thanks for sharing your perspective, it’s a smart, long-term approach.

You are likely competing with a lot of unsophisticated buyers who have money and hear owning a 4 plex is a smart investment.5.

@Eddie Gonnella Also, when you are at such a scale, you may be able to fetch a valuation based off of cap rates, rather than a rev. multiple.So it is possible, and it is smart to think ahead in this situation so you don't get stuck with nothing if you want to exit!

I am not smart enough to figure this one out.Somebody mentioned they have access to the ocean.

I provide a Smart TV or a Roku. 

**“Kendric, first off, you’re already ahead of the game with your willingness to learn and adapt—plus, having a ‘mishap’ fund shows you’re planning smart! 

Starting with single-family and small multi-family properties is a smart choice, especially out of state.

If you can attend local investor meetups, that’s a great way to gain market insight and connect with reliable people.It’s also smart to start small with a couple of flips to test the waters, and make sure you understand the local market dynamics before scaling up.Good luck with your expansion! 

Never smart to put all your eggs in one basket.I've heard of people getting their listing suspended for petty things outside their control.