I'd pay about $890,000 for that portfolio to meet my numbers ($150/door and 15% Cash on Cash return)Here are the numbers as I see them (per house, then multiply by 27):My price:Final Offer Price 33000% Down Payment 30.00% (portfolio loan)Down Payment $9,900 Remainder of closing costs $1,500.00 (this might be high, but I'm not sure how much the closing costs on a portfolio loan are going to be)Total Due at Signing $11,400 Mortgage Rate 6.00%Length of Mortgage in years 30Monthly Mortgage payment $138.50 Taxes $45.83 (guessed at $550/year)Sewer and Water $- tenantTrash $- tenantHeat/Utilities $- tenantHOA $- tenantCap Ex and Ops $150.00 Insurance $45.83 (guessed at $550/year)Mgmt Fee $64.10 Vacancy $51.28 Total Expenses $495.54 Total Revenue $641.00 (used GRM against 1.43M to get ~208k/year in revenue)Cashflow/month $145.46Cash on Cash Return 15.31%

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? 

I've been able to multiply our equity to about $400k on these homes from my original down payment of just $5k!  

I've searched the forums and haven't found any discussions that address a couple questions I have about calculating cost basis of a rental property.1) I know that to determine cost basis, you need to multiply the purchase price of the house by the land/improvement ratio, which you can calculate based on your property tax assessment or the appraisal from when the house was purchased.  

I like the strategy of fix & hold and want to establish multiply rental properties in the area I grew up in.

I would also like to know is, for example if a house is on the market for $17k and they say that the home has about $10k-$15k worth of repairs (or even if I do and inspect the place myself ), What do I add ,divide, multiply, or what not to get the numbers that I need to put the house up for, so that I can get a profit?

Most people here use GRM (Gross Rent Multiplier) to determine what type of value a multifamily is and how it compares to other similar properties, you'll probably want to start there in terms of valuation.

"Get it, Keep It, Multiply It."

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

Take the rent amount, multiply it by 75%, and make sure that number is higher than your departing residence PITI.- No law says that you can't sell a home with a tenant in it.