9 Times Gross Rent Multiplier?

Multi-family is great for cashflow, but the expensive repairs are also multiplied.  

What is the .70 you multiply first?

Second, businesses are valued on gross revenue or net profit multipliers.

I have been looking at the Gross Rent Multipliers (GRM) for only duplexes in Nashville-Davidson County dating back to March-2015. 

No, they will not go "oh two houses one lot, let's take SFR comp prices and multiply by 2" or anything like that.

I understand the 70% multiplier differs between areas but that doesn't address if the percentage is enough!

Heres what I got:Monthly Income:$1,897.00Monthly Expenses:$1,737.92Monthly Cashflow:$159.08Pro Forma Cap:5.48%NOI:$11,233.60Total Cash Needed:$14,750.00Cash on Cash ROI:12.94%Purchase Cap Rate:7.49%Total operating expenses:$960.87Mortgage expenses:$777.05 Vacancy:$189.70Repairs:$189.70CapEx:$284.55P&I:$777.05Property Taxes:$296.92Purchase Price:$150,000.00Purchase Closing Costs:$3,000.00Estimated Repairs:$6,500.00Total Project Cost:$159,500.00After Repair Value:$205,000.00 Down Payment:$5,250.00Loan Amount:$144,750.00Loan Points:$0.00Loan Fees:Amortized Over:30 yearsLoan Interest Rate:5.000%Monthly P&I:$777.05 Total Cash NeededBy Borrower:$14,750.00Financial InfoIncome-Expense Ratio (2% Rule):1.19%Total Initial Equity:$60,250.00Gross Rent Multiplier:6.59Debt Coverage Ratio:1.20Looking at the numbers how would you judge this property so far?

A 2% deal would be really great for your ROI but it's not your ROI.Your ROI is calculated as such, using your example.down payment is $8,000Your rent payments are $2,600Subtract your expenses (mortgage, insurance, tax, pmi, and any other bills you will pay) let's say that comes out to $2,000.So 2600 - 2000 =600then multiply your monthly cashflow by 12 months600 × 12 = 7200finally divide your yearly cash (7200) by your invested money (down payment) 80007200÷8000 = 90% ROIhope this helps

The multiplier is a market-driven metric, just like the Cap Rate.