I'll tell you what I DO know and sorry if I'm going over some basics that you already know.To determine Prop tax, the "assessed value" is multiplied by the assessment ratio and then by the milage rate.

This means taking the monthly gross rents and multiplying them by 60 making sure that number is at or under the sales price.

Every state is different on what labor and material will run you, you are from PA and he is from Maryland ( he may have investments in PA and know the market) but i wouldn't go buying a property based on that price fluctuation. go to a local reia meeting and talk to other investors in your area that may be willing to sit with you and give you an idea, take a contractor out to lunch and pick his brain for a little bit or purchase an estimating program that has a multiplier in in for whatever state you want to do an estimate for.

Your rent to cost multiplier of 0.88% could be profitable in a higher rent market. 

There are faster ways to multiply equity, but they come with more risk.Here is my biased pro/con list for syndication vs SFR/small multis.

Multiply the GBA by the cost per SF ($475) and you get construction costs of $17,480,000.

Forced appreciation is multiplied across a number of units for a nice multiplier effectCommercial deals are a lot more sophisticated and generally involve pooling money unless you have a ton of it to do it on your own.

How do you go about finding out or determining the proper Gross Rent Multiplier to apply to a house that you are thinking about purchasing?

The analysis below is a conventional loan with 20% down.Financial Analysis Cash on Cash Return3.65 %Internal Rate of Return (IRR)9.65 %Return on Equity (ROE)4.05 %Capitalization Rate5.89 %Gross Rent Multiplier (GRM)9.06Debt-coverage Ratio (DCR)1.24Operating Expense Ratio (OER)43.19 %Also, the seller is offering owner financing with interest only loan for 3 years so she can have time to locate another property in Florida (this property is in West Virginia) for a 1031 exchange.  

Domenick, From the two sites you recommend me do they show me the Gross Rent Multiplier of a certain city, also are these sites more accurate with information than mashvisor.com?