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. 

LOTS OF POTENTIAL DEPENDING ON YOUR NEEDS.See my analysis below, I dropped the asking price down to $ 155,500.Monthly Income: $1,790.00Monthly Expenses: $1,523.74Monthly Cash Flow: $266.26Pro Forma Cap Rate: 7.77% NOI    $12,861.60Total Cash Needed  $18,942.58Cash on Cash ROI    16.87%Purchase Cap Rate  8.27%Purchase Price: $155,500.00 Purchase Closing Costs: $2,000.00 Estimated Repair Costs: $10,000.00...needs paint job, carpet & minor repairsTotal Cost of Project: $167,500.00 After Repair Value $165,500.00Down Payment: $5,442.50 Loan Amount: $150,058.00 Loan Points: $1,500.58 Loan Fees: Amortized Over: 30 years Loan Interest Rate: 5.000% Monthly P&I: $805.54Financial Projections Total Initial Equity: $15,442.00 Gross Rent Multiplier: 7.24 Income-Expense Ratio (2% Rule): 1.07% ARV based on Cap Rate: - 50% Rule Cash Flow Estimates Total Monthly Income: $1,790.00 x50% for Expenses: $895.00 Monthly Payment/Interest Payment: $805.54 Total Monthly Cashflow using 50% Rule: $89.46           Any advice is greatly appreciated.