@Donald Longo,$30K or $50K per door: Multiply that times the number of Apartments in the Building.Most REIA meetings have a "Guru Speaker."

:D [http://www.escapetheillusion.com/blog/2009/05/energy-that-multiplies-itself/]

For instance, they can assess how much it would cost to construct (replacement cost) or multiply by a discount factor due to lack of liquidity/type of property. 

Then, it's 30,000 / .08 = $375,000.Your calculation of multiplying the NOI by 10 is ONLY accurate if the market is at a 10 Cap.

It says that you should take the After Repair Value (ARV) of your subject property (based on what comparable properties in the area have sold for unless you have an appraisal), multiply it times 70% then subtract estimated costs of repairs from that number to arrive at the max price you should offer for the property.  

With 4 properties versus one the other advantages are multiplies as well.

I have house hacked twice now.I always use these 6 formulas when doing basic numbers on a property.The 1% rule- example is a $100,000 House should rent for around $1,000 per monthThe 50% rule- 50% of the gross rents of the property will go towards expenses on the property that don’t include principal and interest payment.Gross rent multiplier- similar to a P/E ratio where you take the purchase price and divide by the gross rents for the property Cap rate- tells us what a property will produce after expenses.

Measure your riser and multiply x2 then add the tread.

Attach a higher multiplier for houses that need more work.

To calculate your ROI on the third bedroom first figure out what the difference in rent you will in for the third room, multiply that number by 12, then divided by 25k; this equals your ROI.