Then multiply by x properties!

While they made your money multiply in ways you've never imagined. 

I live in Eau Claire too and wouldn't mind sitting with you sometime.As far as your questions go...1) I'm not familiar with the 50% rule but ttypically the first calculation I do when looking at a property is the GRM (gross rent multiplier).  

and here are the datas about the house and financing: Purchase Info Purchase Price $ 153'000 - First Mortgage $-100'000 - Second Mortgage $-0 = Downpayment $ 53'000 + Buying Costs $ 3'060 + Initial Improvements $0 = Initial Cash Invested $ 56'060 Square Feet 1'458 Cost per Square Foot $ 105 Monthly Rent per Square Foot $ 1.06 Mortgages First Second Loan-To-Cost Ratio 65.36 % 0 % Loan-To-Value Ratio 65.36 % 0 % Loan Amount $ 100'000 $ 0 Loan Type Amortizing Term 30 Years Interest Rate 6.75 % Payment $ 648.60 $ 0.00 Financial Metrics (Year 1) Annual Gross Rent Multiplier 8.3 Operating Expense Ratio 39.5 % Debt Coverage Ratio 1.33 Cap Rate (Purchase Price) 6.7 % Cash on Cash Return 4.5 % Assumptions Appreciation Rate 6.0 % Vacancy Rate 8.0 % Income Inflation Rate 4.0 % Expense Inflation Rate 3.0 % LTV for Refinance 70.0 % Selling Costs $ 10'710 

In my market, renovated homes typically sell for 40-60% more than the assessed value, so it can actually be a very useful screening tool when looking at properties - I know that I can look up the assessed value, multiply it times 1.4 or 1.6, and get an very rough estimate of the ARV.

I tend to use a Gross Rent Multiplier, the "2% rule" everybody uses here is a 50 multiplier (50x rent). 

Edit Report Other actions $1,300.00MONTHLY INCOME$1,636.01MONTHLY EXPENSES-$336.01MONTHLY CASHFLOW3.65%PRO FORMA CAP$10,140.00NOI$59,500.00TOTAL CASH NEEDED-6.78%CASH ON CASH ROI3.69%PURCHASE CAP RATEExpensesIncome50% RuleTotal operating expenses:Mortgage expenses:Vacancy:$65.00Repairs:$65.00CapEx:$26.00Management:$143.00P&I:$1,181.01Property Taxes:$156.00 $275,000PURCHASE PRICEPurchase Closing Costs$2,500.00Estimated Repairs$2,000.00Total Project Cost$279,500.00After Repair Value$278,000.00 Down Payment$55,000.00Loan Amount$220,000.00Loan Points$0.00Amortized Over30 yearsLoan Interest Rate5.000%Monthly P&I$1,181.01Total Cash Needed$59,500.00 Financial Info0.47%2% RULE $58,000.00TOTAL INITIAL EQUITY 17.63GROSS RENT MULTIPLIER 0.72DEBT COVERAGE RATIOAnalysis Over Time1% /yearEXPENSE INCREASE 2% /yearINCOME INCREASE 3% /yearPROPERTY VALUE INCREASEYear 1Year 2Year 5Year 10Year 15Year 20Year 30Total Annual Income$15,600.00$15,912.00$16,885.94$18,643.44$20,583.87$22,726.25$27,703.18Total Annual ExpensesOperating ExpensesMortgage Payment$19,632.09$5,460.00$14,172.09$19,686.69$5,514.60$14,172.09$19,853.79$5,681.70$14,172.09$20,143.61$5,971.52$14,172.09$20,448.22$6,276.13$14,172.09$20,768.37$6,596.27$14,172.09$21,458.48$7,286.39$14,172.09Total Annual Cashflow-$4,032.09-$3,774.69-$2,967.85-$1,500.17$135.65$1,957.89$6,244.70Cash on Cash ROI-6.78%-6.34%-4.99%-2.52%0.23%3.29%10.50%Property Value$286,340.00$294,930.20$322,278.19$373,608.75$433,114.94$502,098.92$674,778.97Equity$69,585.80$81,587.87$120,254.98$194,656.21$283,770.34$390,751.93$674,778.97Loan Balance$216,754.20$213,342.33$202,023.21$178,952.54$149,344.60$111,346.99—Total Profit if Sold *-$19,716.89-$12,262.63$14,221.03$73,502.48$154,596.89$261,436.42$572,322.66Annualized Total Return-33.14%-10.90%4.38%8.38%8.91%8.79%8.19%* Property value minus net cash expenditures and sales costs

Gross Rental Income $4,000.00 $48,000.00 Vacancies ($600.00) ($7,200.00) Gross Operating Income $3,400.00 $40,800.00 Expenses ($1,250.00) ($15,000.00) Net Operating Income $2,150.00 $25,800.00 Debt Service ($1,342.00) ($16,115.00) Before Tax Cash Flow $807.00 $9,685.00 Theres a few things I don't understand, How is the cap rate 9% I'm getting ( 9685.00 / 280,000 = 3.4 % )Financial Ratios Gross Multiplier 6 % Cap Rate 9 % Internal Rate of Return 17 % Yield 17 % Debt Coverage Ratio 1.60 1.64 1.68 1.73 1.77 Loan to Value (LTV) Ratio 80% 75% 72% 68% 64% 61% Ownership Percentage 24% 27% 31% 35% 38% Cash on Cash Return (BT) 17 % 18 % 19 % 20 % 22 % Cash on Cash Return (AT) 15 % 16 % 17 % 17 % 18 % How do you read and understand the cash flow page ?

In fact, if you were an unscrupulous guru, you would multiply that $50,000 profit by 365 and say that this was an annualized profit of $18,250,000 (even though you probably don't have a prayer of doing a deal like this every day)!

I'm currently working with them to find a place.https://www.lasouthreia.com/learn/upcoming-events/I'm a newbie, but from what I've read and the presentations I've been to it's hard to find places in southbay where the Gross rent multiplier gets even close to getting you to cash flow.