Chuck,The Gross Rent Multiplier is going to vary from one part of town to the other.Properties that are in less desirable neighborhoods -- or older properties that require more maintenance -- are going to sell for smaller multipliers.Generally speaking, real estate "nirvana" (at least based on what the majority of people on this forum seem to think) is when you find a decent property that will rent for 2% of your total cost (cost plus rehab, if any).

I think the inherent flaw in your calculation is adding your "profit" after already multiplying by .70 Your profit is in already the 30% spread.

Personally, I would take 3 highly scrutinzed comps and determine a sales price per square foot; then, multiply this number by the subjects’ living area under air to come up with an estimated ARV.

What exact do you have on your hands other than your money not being very well leveraged and the maintenance of a big headache with little to no cash flow.R2d2,You do understand that you multiply that $200 per month by the number of rentals you have.

Beside you seem to lack general knowledge which multiplies the potential for problems.

Nothing worse than going it alone with unstable cash flow to only see something as critical as health insurance costs double/triple/quadruple (pick your multiplier).

The real benefit of leverage (using OPM) is it multiplies what you can do with your own capital.

So you need to take the ARV multiply by the discount to ARV your buyers expect to pay, then minus out your wholesale fee to arrive at your MAO.

Leverage is the most powerful tool of the investor, since it's a multiplier. 

Multiply that by 20 and you will be in serious trouble.