Rents are shooting the moon and rent multipliers are even more crazy.  

We are multiplying fast lol.

This is why a NET income multiplier is much more important then a GROSS income multiplier.  

Couple things Account Closed,If you're going to hike rent on your tenants long-term average at least 3% per year, you can let them to pay your 30 year mortgage off in 20 years pretty easily:Take whatever last month's P&I+Extra payment was, multiply it by 1.0025 (3% / 12 = .25%), and make that your next monthly payment.

While yes, near core Seattle cap rates have been typically trading between 4.5-5%, I would suggest you rather, or at least in conjunction with cap rates focus on the gross rent multiplier.

One by multiplying the purchase price by the Cap rate to determine what income you should be getting.

You take the age of the unit and multiply by the cost of the repair.

Purchase Details % Purchase Price One Time Monthly Annual Full Market Value $400,000 Assessed Value: $325,000 Purchase Price Percent of Market Value: 92.31% Purchase Price: $300,000 Equity at Purchase: $100,000.00 Down Payment: 20% $60,000.00 Mortgage Amount: 80% $240,000.00 Mortgage Length: 300 25 Mortgage APR: 7.0% Mortgage Payment (Principal Payment) $1,696.27 $20,355.24 Closing Costs: 2.0% $6,000.00 Renovation Costs: 3% $10,000 Out of Pocket Costs: 25% $76,000 Total Renovated Cost: 103% $310,000 Rental Information % # Units Monthly Annual 2% Rent of Purchase Price: 2% $6,000 $72,000 2% Rent of Renovation Cost: 2% $6,200 $74,400 # Units: 11 Unit 1 Rent: 0.17% $525 $6,300 Unit 2 Rent: 0.16% $500 $6,000 Unit 3 Rent: 0.17% $525 $6,300 Unit 4 Rent: 0.16% $500 $6,000 Unit 5 Rent: 0.15% $450 $5,400 Unit 6 Rent: 0.20% $625 $7,500 Owner pays gas, water & electric Unit 7 Rent: 0.31% $950 $11,400 Owner pays gas & electric Unit 8 Rent: 0.31% $950 $11,400 Owner pays gas, water & electric Unit 9 Rent: 0.31% $950 $11,400 Owner pays gas & water Unit 10 Rent: 0.21% $650 $7,800 Owner pays gas & water Unit 11 Rent: 0.21% $650 $7,800 Owner pays gas & water Gross Scheduled Income (GSI): 2.35% $7,275 $87,300 Vacancy % 5.00% 5.00% Vacancy (V) 0.12% $363.75 $4,365.00 Gross Operating Income (GOI) 2.23% $6,911.25 $82,935.00 Average Rent/Unit: 0.59% 661.36 $2,236 Calculated Financials % Monthly Annual Estimated Operating Expenses (OE): ($3,255.22) ($39,062.69) Estimated Net Operating Income (NOI): $3,656.03 $43,872.31 Annual Debt Service (ADS): $1,696.27 $20,355.24 Capital Expenditures $1,747.54 $20,970.50 Estimated Cashflow: $212.21 $2,546.57 Estimated Cashflow per Unit W / Cap Ex $19.29 $231.51 Estimated Cashflow per Unit W / O Cap Ex $1,959.76 $23,517.07 ROI Based on Downpayment 0.35% 4.24% ROI Based on Out of Pocket Costs 0.28% 3.35% Additional Analysis % One Time Monthly Yearly Purchase Price Per Unit $27,272.73 Renovated Price Per Unit $28,181.82 Gross Rent Multiplier (GRM) 3.44 Capitalization Rate 14.62% Debt Coverage Ratio 2.16% Purchase Property?

Our duplex is almost as much as our quads, and if I multiply our SFH times 4, that is much more than what we pay for the quads.I am evaluating a multifamily deal in Huntsville, AL and my insurance guesstimate is way over what was provided by the seller's agent.  

What makes sense to me is that my offer price would be based on what I feel the NOI currently is and some multiplier, which would be the cap rate in the area.Regarding rate of return, I feel this is different than cap rate because it includes the financing information. personally I'm looking for a minimum 12% COC return.