No multiply that by 2.

For those of you not good with excel, go to block B4, go up to the line you can input your numbers and change the multiplier to whatever your area's RE taxes are.

Yes, a broker could just focus on making sure he got the most out of the one transaction, so he would prefer to sell a $300k house over finding one for a fiipper at $200k, but that flipper's house could be, under my example, a total of $550 in sales, multiplied by however many times the flipper reinvests and flips, instead of just that $300k one time deal.

Multiply that times 75%.  

Personally I like to try and determine how many man hours things might take and then multiply that by what a standard labor rate might be.

I will tell you that finding a contractor that hasn't multiplied their costs in the last year are hard to find.

From there, multiply out your re-fi amount (75-80% LTV of the ARV), then subtract your renovation expense to ensure you'll have enough equity to get all (or most) of your money back out.

So do I combine the number of bathrooms and bedrooms to compare to single homes or do I assess each house on the property against a comparable single house and multiply by 2?

Purchase Info Initial Market Value $65,000 Purchase Price $39,000 + Buying Costs $780 + Initial Improvements $0 = Initial Cash Invested $39,780 Income Monthly Annual Gross Rent $750 $9,000 Vacancy Loss ($60) ($720) Operating Income $690 $8,280 Expenses (% of Income) Monthly Annual Cleaning & Maintenance (6%) ($40) ($480) Insurance (7%) ($50) ($600) Management Fees (10%) ($69) ($828) Taxes (10%) ($67) ($804) Operating Expenses (33%) ($226) ($2,712) Financial Metrics (Year 1) Annual Gross Rent Multiplier 4.3 Operating Expense Ratio 32.8% Cap Rate (Purchase Price) 14.3% Cash on Cash Return 14.0% Net Performance Monthly Annual Net Operating Income $464 $5,568 - Year 1 Improvements ($0) ($0) = Cash Flow $464 $5,568

Been looking/analyzing 2-5unit properties in that area and wondering what general guidelines there might be for gross rent multiplier and cap rate that would be considered normal, if there is such a thing!