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.  

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

For example  j Scott's book on estimating rehab costs is great but I think almost everything is multiplied by bare minimum 1.5 sometimes maybe 3.

So, to find the maximum acquisition cost (purchase price + rehab cost), divide the gross monthly rent by .02 or multiply the gross monthly rent by 50.Good Luck,Mike

Originally posted by Scott Bartlet:While I'd still like to figure out a more accurate way of measuring a roof without actually climbing on top of the property to measure it.What I've found to be somewhat reasonably moderately sorta kinda almost accurate (in other words, it's better than nothing) is to multiply the length of the house by the width of the house and then multiple by 2.

In some areas, I know the assessed value reflects the FMV when I use a multiplier to adjust the assessed value.

Chuck,The Gross Rent Multiplier is going to vary from one part of town to the other.Properties that are in less desirable neighborhoods -- or older properties that require more maintenance -- are going to sell for smaller multipliers.Generally speaking, real estate "nirvana" (at least based on what the majority of people on this forum seem to think) is when you find a decent property that will rent for 2% of your total cost (cost plus rehab, if any).

Then multiply that by 5 (5 hits each)

multiply by .7 = $385kLess $50k rehab = $335k for your 70%You have this amount as your max loan amount, but this should be your max all in. 

Which one of these numbers am I multiplying the 70%- repairs- my fee?....