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?

See if you can get that, divide that by 30 and multiply by the number of days the tenant cheated on you. 

Clifford, this comes up a lot on BP, so it's worth your time to research what else has been written.Short answer: leverage allows you to scale faster and multiplies your returns at the "cost" of more risk and restrictions (e.g., meeting lender underwriting requirements).Something to keep in mind: you can buy cash and then finance later.

Tanya...take everything that Daniel said and multiply it exponentially!

A real rough and ugly way to see what it will add is look at the average sq ft price for you neighborhood and then multiply that by the space you are adding to your home.

Here's a quick way to evaluate a property: take the annual gross income, multiply times .5 (half goes to expenses, divide this (the net operating income), by your desired cap rate (e.g. 8%)Here's an example: $100,000 gross income, x .5 = $50,000 net operating income, divide this by .08 and you get the purchase price of $625,000.If they're asking $650K, the property is probably worth looking into.