Yes, they are multiply buildings, but they are strategically and closely located so that I can manage easier.

Equity Harvesting (slow but nice in the right circumstances)Cashflow (while renting) - 2x costs.Financial leverage - More Cashflow and multiplying Equity dispersion across assets that produce a higher return then the alternative. 

Originally posted by NA Beard:, take the GSI / Price better known as the Cap Rate and higher is more interesting.That calculation is for GRM, not cap rate. ( gross rent multiplier)

Although there is not rule of thumbs here is one that will get you in the right magnitude. 5 dollar /SF for light10 for medium15 for heavyObviously use an economic and geographic multiplier on where you are in the economic cycle/season and perhaps 2x it if you are in Seattle.

They use regional multipliers for whatever area you are in and I can't imagine it to be "accurate" but better than just guessing.

You then take this percent and multiply it by your gross income from the property.

Just make sure when you're doing your estimate on a property, that you multiply the mill rate by the property's assessed value (i.e. not the asking price on zillow or some site like that).

Sale Price: $4,950,000NOI: $567,000Number of Units: 238Gross Rent Multiplier: 3.2Cap Rate: 11.5%While I understand the tenants are all low-income and the building has a not so good reputation, can anyone provide some general feedback on this place?

GRM (Gross Rent Multiplier) is one of the standard methods of appraisal, but the secret sauce is knowing the expected GRM for that type of property in that area.

The most common way to account for the non-habitability (which lack of running water would certainly qualify) of a rental unit is to take the monthly rent amount and divide it by the number of days in the month and then multiply that by the number of days that the property wasn't habitable.