Here's my formula when evaluating a potential rental property:  Take your weekly rate and multiply it by 26. 

Also the cash on cash ROI is 13.82% and monthly cashflow is $587.25. also the gross rent multiplier is 1.67 and income expense ratio is 1.86%(2%rule) .

So far it seems to me 8+ unit apartments tend to have lower gross multiplier (selling price) to help out with the higher interest rates.

But at some point, once you build up enough of a portfolio, its just easier to average things out.If you only want to buy a handful though, it might make some sense:i.e. 1,000 to 1,500 sq ft home - Capex is 80/mo and repairs 50/mo1,500 to 2,000 sq ft home - Capex is 90/mo and repairs 60/mo.2,000+  Capex is 100/mo and repairs 70/moAnd then you'd have some sort of multiplier for age. i.e1900 to 1950 - Add 20% to those numbers (capex 95/mo, repairs 60/mo for 1000 to 1,500)1951 to 1980 - Add 10%1981 to 2000 - No multiplier2000+ Subtract 10%Again, you'd really have to want to get into some analytics.

I spent a year running around when I started, looked at over 80 properties before purchasing, exploring local investing vs long distance investing.I find a quick way of distinguishing areas, analyzing profitability is the GRM (gross rent multiplier) the ARV/Annual Rent.

Remember, your property taxes are the product of your assessment multiplied by the tax rate, which is unknown.

Clary Roberts  you can use your IRA and get line of credit with us which will be multiplied by 5 on the value.

Which, we can use as years or multiply by 12 to get total periods.

Hi @Ben Kahle - Buildings with five or more units are generally cheaper per unit and will also have higher gross rent multipliers.

@Sharon GoldBoth advice from @Joel Owens & @Michael Siekerka are excellent.Commercial building value comes from the land & the best & highest use. 1)If you can use the buildings & make the best use for yourself, then it is worth a premium to you.2) if you can tear down the building as Joel is saying & put up a national NNN tenant there, there, then it is worth a premium.3) in most other cases, it is based upon the income approach, how much rent as Michael is saying; will this place generate & multiply that by the market cap, you shall have a fair market value.4) if this location is at the dead end & needs work, stay away or offer whatever you think is worth, never mind about the asking price.