Proximity to good schools, crime prevalence, BART (San Francisco and other commute), gentrification being some of the major drivers.Looking at MLS listings many, many of the Oakland buildings are sold with rents at near 50% of market and I would never buy with a multiplier assuming I could raise building to market rent due to rent control restrictions.

An investor looking to create transactions below market value (known as wholesale) will have to use his knowledge, his cunning, his negotiating skills, personality and alternative financing techniques (also know as creative financing) to make the deal work.To FLIP properties for a profit could also be known as making a short term profit by controlling real estate below market value (wholesale).Some tips:Make offers often subject to assignment and public auction (sold as is all cash)Using "bank days" (gives you more time to find an assignee)Build in an automatic extension (so that you do not have to ask for it when you need it)Always ask for Contract Candy in your offer (seller incentives; all the furniture, cash back etc)Use hybrid offers (limited partnership with the seller)Get right of possession (so you can show the property, clean it up a little, prep for auction sale)Multiply your offers (have agents make offers on your behalf on expired listings, no need to look at them, offer 25% below the expired listed price, subject to inspection.

$100k is nice starting seed, so protect it now and watch it multiply later!  

Multiply times 1.5 and add that to the rent.

What sets you apart from the other seemingly multiplying real estate investors that like you (and me for that matter) are somewhat new to the real estate game?

Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.III.

I'd multiply that annual rate times the purchase price over a 30 year period (should I use 30 years?)

Then once you find something sorta close, find the price per square foot and multiply that number by your subject properties square footage. 

(I also tried the analysis tool on the site, and the numbers looked good: gross multiplier at 7.69; cap rate at 10.39; net operating income at 9,348.00; debt coverage ratio of 1.44 at year 1; and pretty good equity).I really appreciate the help and insight.

purchase price approx 900000Closing costs approx 10776Repair costs about 10 - 20000After repair value - 1000000Monthly income currently - 5100Monthly expenses - 7195Monthly cashflow - -2095NOI - 36,715Total cash needed - 39524Cash on cash ROI : 63.62%Proforma cap rate - 3.99%Purchase cap rate - 4.08%Loan amount - 960300Loan fees ~ 50005%30yr fixedTotal cash needed - 39524Income/expense ratio .55%Gross rent multiplier - 14.71Debt coverage - 0.59%2% yr expense increase5% yr income increase7% yr property value annual increaseWhat does the gross rent multiplier mean?