By that I mean, just because the property next door has CR=7.5% doesn't imply that yours  will or should be the same.A back of the napkin equation for ARV would be the sum of all monthly rentstimes 12 months; this get's you to the GSI(Gross Scheduled Income)times a GRM(gross rent multiplier) and reasonable number is 10and the ARV is ~= FMV just calculated.

It's a great strategy if rents increase and appraisals are positive, but if the market turns on you it can quickly multiply your losses.During the trough of the financial crisis, home prices fell so violently in certain locations that odds are the prices would revert to their historical mean which made it an absolute great time to be bullish on BRRRR.

Assuming we all match funds on the all cash purchase and related costs and the contractor will be doing the rehab/remodeling should he be allowed to add in a profit multiplier for his work?

@Jason UtleyIt's amazing how you Net Worth & New Western guys just keep multiplying.  

Since you disagree with Ramsey (rightfully so), avalanche the mortgages, rather than snowballing them, unless you would save more by eliminating the PMI from smaller mortgages..

We have enough cash to multiply what Brandon outlined several times in the first round.

Where they take the ROI percent, divide by the total number of periods and then multiply by 12 to annualize the number:114.28%/84*12 = 16.33%That simply is not correct.

Hands down the biggest 'mistake' I've made, since you can never get the time back that could have been multiplied on investments. 

Here, you essentially multiply the outstanding capital by the pref and that's what you are accruing. 

Using a Gross Rent Multiplier of 5 it would be 252k.