Then, I divide that gross rent by 2 to get the NOI (based on the 50% rule).Next, I determine my desired cash flow by multiplying $100 by the number of units in the building/complex.I subtract that cash flow number from the NOI to get the maximum payment I can make (assuming 100% financing).

In my market my number is 2% or a monthly gross rent multiplier (GRM) of 50.

It needs some serious help but its in the revitalization district of our downtown, so its got some upward potential over the next couple years.I try to sell my lower end rental property at a 50 monthly Gross Rent Multiplier (monthly rent X 50) or better.

@Danny Randazzo, neither, I know the millage rate so I just take 90-100% of the purchase price and multiply. 

If you multiply that by the 1000 people looking to buy that means that the 400+ group just got 1000 less buyers and the $350-390k group picked up an additional 1000 buyers.  

. -- Taxes: $900/year -- Insurance: $300/year -- Vacancy Rate: 0% (It's already rented upon purchase) -- Money put into it: $0 (Upon inspection there is nothing for us to do).Here are the results from my analysis spreadsheet: Cash on Cash Return: 170.15%Debt Coverage Ratio: 2.378Vacancy Breakeven: 44.43%Operating Expense Ratio: 23.33%BreakEven Ratio: 55.57%Capitalization Rate: 18.65%Gross Rent Multiplier: 4.111Net Income Multiplier: 5.362LTV Ratio: 95.00%Monthly Rent to Value %: 2.03%Cash Flow: $331.20/month - The amazing thing about this number is it's WITH a property manager taking 10%. 5-year IRR (using 2% appreciation): 175% 10-year IRR (using 2% appreciation): 172%Present Value: $11,678Net Present Value: $9,328Profitability Index: 4.97Before anyone starts to say how a price this low isn't somewhere they want to be, listen to this. 

If the event has occurred or is expected to occurmore than once, multiply this number by the frequency of the event.

Benefits of RE...AppreciationDepreciationCash FlowTaxAppreciation: your appreciation will multiply because of leverage.

Leverage is a great multiplier for real estate investing, especially when it comes to multi-family.

If you know what the Gross Multiplier is send that and we will look at the projected profits for 1, 5, 10, 20 and 30 years.