I'll tell you what I DO know and sorry if I'm going over some basics that you already know.To determine Prop tax, the "assessed value" is multiplied by the assessment ratio and then by the milage rate.

This means taking the monthly gross rents and multiplying them by 60 making sure that number is at or under the sales price.

Also consider that if you invest $10K and raise the rent by $100 you have not improved your gross rent multiplier at all.

Tanya...take everything that Daniel said and multiply it exponentially!

Other than the bank doesn't normally request that alone, it is also important to note that the numbers used in an income approach are often derived from the sales comparison comps, or other sold comps.The income approach section of a duplex appraisal form relies on the Gross Rent Multiplier.

I usually take my max purchase price, and multiply it by 85%, and that is my initial offer.5.

Some simply use a gross rent multiplier, which would have nothing to do with comps.

Anyhow, for starters by way of comps, find out what the Cap rate is in a 2 mile radius for mixed use commercial of similar size.Find out the current NOI and if the subject property needs an upgrade, multiplying that figure (NOI) by 9 should place you in the neighborhood of where you want to begin considering where your offer should be.Of course you must do due diligence but you could start with this.

At 2%, you get a rent multiplier of 50.

I did see something that said, for estimating repairs, you should first determine how damaged a home is and then take a rough number from 5-25 (5 on a home that isn't in bad condition) and multiply it by the square footage of the home So a home that needs moderate repairs and is 1000 sq ft may need 10-15K in repairs Is that a valid rule of thumb?