Time is the multiplier.

Since then, I've continued to grow my STR portfolio while simultaneously starting to venture into development (where you can multiply your capital more quickly). 

Not too shabby all in all, when cash on cash returns are probably only a few percentage points better at best these days on a cash purchased property.From a rental real estate perspective, once you understand that leverage (ie. financing your property) allows you to literally multiply you cash on cash return by a factor of 3 to 4, the typical returns on real estate start to look much more attractive than many other investments.  

You take the assessed or appraised value from the tax assessor (either the website or from your tax bill), and you multiply that assessment by the CLR value for your area to get the "fair market value" (FMV).

Line 5: 20,000Line 6: 150,000Line 7: AGI 125,000Line 8:(Subtact line 7 from line 6) 25,000 Line 9:(Multiply line 8 by 50%) 12,500 Line 10:(Enter smaller of line 5 or 9) 12,500 Thanks in advance,Winston

Figure out your cap rate of your current properties and if you are comfortable with that cap rate, multiply it by the sellers NOI, this should give you a purchase price that is fair to you and most of all, you can explain how you came up with it.

Apartment buildings are worth about 8 to 15 times their annual gross income and it is called a Gross Multiplier (GM) The number for the GM depends on the quality of the area the building is in.

But the extreme leverage crowd would have you invest every penny you have and multiply it 5X by leverage.

It turned out to be around 12 hours of maintenance a year, multiplied by his hourly rate of $50 an hour discounted to $42; $504/year.  

To do that we analyze what the buildings net rent rate would be and multiply that by the magic Multiple.