Commercial guys like to use the gross rent multiplier, which is the inverse of this sales yield.

After that I average the price per sqft of all properties and multiply that by the subject property sqft.

Then, I take the average comp price per square foot of all the comps, and multiply that by the sq ftg of the subject property.  

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.

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

Using the Gross Rent Multiplier appraisal method, the property was appraised at $400,000, and I successfully sold it just below this price within a few weeks of the appraisal.

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.