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11 May 2015 | 105 replies
by the way all have the same bedrooms and bathrooms 3/2add all the homes sold divide by 3 and this is your average per square footthen multiple by subject property square footage and this is your MAOthis is also your technical ( by method of theory) your After repair valueexample prop B ______$125,000prop C ______$130,000prop D ______$119,000================== $374,000 now divide by 3 ( $374,000) =$124,666.67++++++++++++++++++++++++++++++++++++amount per square footage125,000/1680 =$74.40 130,000/1120=$116.07119,000/1540=$77.27================= $267.74 /3= $89.25 is your average over all++++++++++++++++++++++++++++++++++++++now multiply 1400 sq ft X $89.25= $124,947
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23 December 2015 | 135 replies
Are you using a rule of thumb such as "multiply purchase cost by a percent"?
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29 May 2017 | 78 replies
And you'll be gaining 9k a year in appreciation alone.Start multiplying that by 10 or 20 houses and I don't know that I'm going to care whether its making as much as it might in the stock market.Ultimately, most of us average people out here are never going to get ahead putting their money in a 401k.
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22 December 2016 | 6 replies
There are some variations of this rule, but generally:Rent-Financing=x amount.x amount multiplied by 50% will be your monthly exp, so basically half your cash flow.
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16 February 2023 | 139 replies
There is more than 1 way to multiply your money for retirement.Long live BiggerPockets!!!
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3 October 2016 | 65 replies
Just like the gross rent multiplier (GRM), however, it gets abused.
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28 November 2017 | 123 replies
This creates a higher and higher amount of net income and most business or commercial assets sell for a multiple of net income/earnings whether its real estate (cap rate), stocks (Price/earnings - ratios), and or smaller business which you can look up to see what their multiples are.For instance you could start a business with 10,000 dollars and grow it to 250,000 net income and fine tune your business and systems so that it receives the highest multiple in your segment or industry of lets say 13x.250k annual net income X 13x = 3.25 Million so or 300k Net operating income on an apartment building at a 5% cap rate is a 20x multiplier so 300k X 20 = 6 Million evaluationBasically you're creating and manipulating assets by learning the formulas which the "value," is derived.You can focus on the net income (magnitude) or multiplier (velocity or speed).
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22 August 2014 | 14 replies
(Purchase price / 1,000) X 2 = Weekly RentIn the 2% rule, we multiply purchase price by .02 to get the monthly rent that we should try to get close to.
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6 December 2016 | 76 replies
Multiply the few that I know to a national level and you can see a lot of dollars chasing real estate.
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18 May 2023 | 18 replies
It does not take much of a spreadsheet...all you are doing is subtracting last months submeter reading from the current one to get the kwh's used during that period, then multiply that by the cost per kwh for the utility bill to determine the subtenant charge.