You multiply the value of the house by the combined LTV number (80% or 90%) and then subtract how much you owe on the first mortgage, or any other liens for that matter.

To get a ballpark stabilized value, simply take income minus expenses (typically 33%) and then multiply.

When paying cash the GRM (gross rent multiplier) or BEP (break even point) is key here in the short term game.

.- And i guess as a bonus, if you had this cash, what would you do to exponentially multiply it over a 100+ year period?

. $80k for 1200 SF comes to about $67 per SF so multiply now by 1800 SF and you get $120k.

So I didn’t have much of a personal savings account for emergencies earning only 1% in a taxable savings account  I let my money multiply in our Roths buying stocks instead.I pulled out 62k for my first real estate investment four years ago tax free and it took only two or three days to be wired into my bank account.

You can scale and move onto the next deal and keep multiplying it without much money to start with. 

I recently heard Brent Kesler do a seminar on the money multiplier method.

But, I'm more than happy with a $22k wholesale price.Normally, it takes 10 SnoCo Ag bulk acres to create one Sending credit that multiplies into eight UGA Receiving area credits during the transfer.

When the big number gets multiplied by .7 .