To get $10000 per month in cash flow, I’ll make some assumptionsMultiply $10k by 1.25 DSCR to get your monthly net income= $12,500Multiply times 12 to get annual net cash flow = $150k NOIFor information’s sake, assume 50% expense ratio, so multiply $150k x 2 to get an EGI of $300kAssume a Class B in those Texas metros, assume a 5.5% cap, so divide you NOI/Cap Rate to get a value of $2.7MAssume $100k per unit, so you’re looking at around a 27-30 unit property.

What anyone is capable of can be massively multiplied by having people to help them along the way.

Example:Heat is measured in BTU'sElectric baseboard or space heaters $35.13 / per 1,000,000 BTU'sNatural Gas                   $10.02 / per 1,000,000 BTU'sHeat Pump                    $14 / per 1,000,000 BTU'sIt is 3.5 times as much multiplied by every month you are paying to heat the property.Here is a free calculator offered on the Department of Energy's website:http://www.eia.gov/tools/faqs/heatcalc.xlsI just wanted to make you aware of your options and any necessary information before taking on that monthly expense.Also, with a central system, you control it (WiFi Stat).

I talked about the 2% (rents should be 2% of sale price) rule and 50% (rents should be multiplied by 0.5 - principal and interest if mortgage) rule.

Thus, the term Equity Multiple simply means the amount your capital (or equity) will be multiplied by the end of the deal.How about we explore an example deal with a 2x equity multiple?

If you use a Mac I can send you a little Applescript I whipped up to calculate the gross rent multiplier.

If it is strictly rental revenue, make sure that the total revenue from a booking from the direct booking website or VRBO has cleaning fee, guest service fees, sales tax all removed before multiplying 20% for commissions. 

Thus, need to multiply $120k by the expense ratio (generally understood to be 50%, although it can vary depending on property) before using it in the cap rate formula.Using your example …1% rule: Gross annual revenue would be $10k * 12 months = $120k … as you said.Missing step: Net rents are $120k * 50% = $60kCap rate: $60k/$1M = 6%So, a 6% cap rate is the same as the 1% rule.This is roughly speaking of course.

Otherwise you're presumably talking about adding square footage, in which case you can get a ballpark estimate by thinking about how many square feet you would be adding and multiplying that by the cost per square foot for construction in your area (which can vary dramatically but you can get a sense of the range from Googling and looking at pages like this).

Any insights you can share for price multiplies and other deals would be greatly appreciated.