With a "gross rental income" from a  management company in our area it will rarely, if ever, include cleaning fees/taxes in the gross.The ratio (gross rent multiplier) of $45,000 on a $400,000 cabin makes the numbers fairly hard to work.

I'm pretty sure its based on square footage of the space but multiplied by what?

I also asked for the previous utilities and the seller sent a word document saying Gas 310 per month, electric 275 per month and water 175 per month .multiplied those numbers by 12. gave me that as expensesthen took his rent income (all 10 units) multiplied those out for a year and said income. subtracted and said profit. 

Am I simply going to multiply that by my purchase price in order to calculate my property taxes?

@David VanSteenkiste my only suggestion would be to get some bids and perhaps apply multipliers to what you find.

If you are looking for cash flow then Pittsburgh is a great place to be because the gross rent multiplier is pretty low.

So, minimize leverage by paying cash, reduce risk by fixing & stabilizing the property, then add leverage to multiply positive returns once your risk profile comes down.

I don't think there is "most likely scenario".Each note has its own history, behavior and performance.All of the scenarios you mentioned can happen and I run into all of them during the years I am investing in notes, and note status can change on daily basis (a borrower that is working, healthy or married today might change status tomorrow).The tip I can give you is that when you are doing due diligence prior of investing, you should take worst case scenarios and check what will be your profit in such scenarios.If you are well protected and have multiply exit strategies, you will be able to earn even in such scenarios, and of course earn much more in more optimal scenarios.I can tell you 3 things about the note you mentioned - - I like it is a medium term note (13.75 years, not the 20 or 30 years note)- The LTV is very good, so you have good protection here- I think I have read somewhere that statistically there is a higher chance that a note that have once been non-performing will become non-performing again in the future (not sure if this is correct).Good luck,Eran

The really, really rough (never use this on your tax returns... but it is a good way to impress your friends at cocktail parties) is to just take 3% of the purchase price to estimate your gross depreciation for the year.Then--and this is controversial since I am mixing pre-tax and post-tax returns--multiply your gross depreciation by your effective tax rate.

The rough way to get your starting point on value is to multiply 23 (occupied pads) * $200 (lot rent) * 12 (months) * (1 - 0.3 (rough expense ratio for park w city water/sewage)) / .085 (cap rate)  = 454K.