Get a conservative ARV from your realtor, multiply that number by 70%, then subtract the estimated cost of rehab your contractor gives you.

In any case, only finding good deals will allow you to preserve (or quickly regain/multiply) your cash.

Which brings up two key terms:Appraisal - "market value" - what the town thinks a property is worthAssessed value- is a portion of the appraised value, which varies by town or county, that is then multiplied by the mill rate to calculate taxes.Zillow tip - the Zillow estimate is a terrible market value tool taken at face value, but Zillow knows this.

While that's nice when you look at cash-on-cash returns it means literally nothing is your career prospects (multiply that times two if your life works) are worse in the market with better cash-flow.  

By math I mean I took my counties average property tax rate at 2% and multiplied it by the asking price of the property.

Personally I think cap rate is not worth considering in properties under 5 units, I would base it off a gross rent multiplier, but then again I've never done anything with condo's and am unfamiliar with that investment structure.

I think they were putting the value so high because the agent assumed it was 10k ft. he just multiplied that by the avg. sales price. 

I have 1 rental property that has significant equity and I am looking to multiply my investment.

In order to arrive at an estimated value of tax deductions for a rental property would you:A) Add up your annual depreciation, operating expenses and mortgage interest and then multiply that amount by your current tax bracket for actual cash value.

Those relationships can have a multiplier on the capital you have available.