Every dollar you leverage in REI is a multiplier.  

I can give you the build up for month 1-6 for 2016 and multiply that by two before dividing it by the number of units.

If there was a multiplier, i.e.: reducing the loan amount to below 417K, that is one thing.  

Wouldn't it be MORE meaningful to multiply YOUR sf by market derived $ per sf?  

Then multiply that number by how many students can fit in a house.

Multiply that by $910k and your friend will come out roughly even or better in a tax free Roth!!!!

From my experience it is really the same as issues I would be dealing with for a SFH just multiply by 2 or 3 or 4 times.

The formula & the subsequent rearrangement:Capitalization Rate = Net Operating Income/Asset Cost *Now multiply both sides by Asset Cost to remove Asset Cost from right side and place it on the left side results in:(Capitalization Rate)(Asset Cost) = Net Operating Income *Now divide both sides by the Capitalization Rate to get:Asset Cost = Net Operating Income/Capitalization RateI know most people on the forum understand this, but it may help beginners unfamiliar with the formula.The problem with the property you've posted:As Joel Owens notes, the operating costs of 75,000 (17% of gross income) are completely unrealistic.

Seems like I am spinning my wheels with this ****.What makes it even more frustrating is I have a mentor who is claiming some of these properties are home runs (guy owns 300 doors and knows what he is talking about) but he does quick numbers like Cap rates, Gross Income Multiplier, and quick 35% "extremely high" overhead before P&I.  

I would be really interested in knowing what signs you are seeing that tell you giving up a 3.25% 30 year fixed rate is a good thing.I personally have used this strategy in the Bay Area and it has been a force multiplier in my real estate growth.