Higher price = bigger loan = higher mortgage payment = less cash flow when rented.More Units = More Cash Flow -- I recently completed a thorough analysis of the multifamily properties available in the Sacramento area, and the only properties that passed the 1% Test (monthly gross rents close to 1% of purchase price) or had a Gross Rent Multiplier of 10 or below (time in years it would take for property's gross rents to pay for the purchase price of property) were all multifamily units, and more so 3-4 plexes.Financing is the Same as Single Family Home -- there's no added loan requirements, and you can still qualify to purchase the property with FHA or VA loan if you so choose (thank you for your service by the way!)

Otherwise, most commercial loans are at 75% LTV.I can share a spreadsheet with breakdown of relationship between LTV%, property discount %, gross rent multiplier % and interest rates/terms.

So I multiply that by 3 times that I will be sending them my marketing post cards.

They are using an approach called Gross Rent Multiplier where they use the gross annual rent of the property to determine property value.

In some areas, you have to count up the tax stamps and multiply by whatever value each tax stamp represents.

In fact, a lot of buying good investment properties is to find properties with a low GRM (gross rent multiplier).

However I do have approx. 250K investments, which I am intended to use and multiply and achieve my American dream.

Sum the actual rents, multiply by 12 months, then multiply by 10 (GRM). 

But, by closing on it, cleaning it out and listing it on the MLS, we multiplied our profit 5-fold.This is a strategy that's worked well for us over the past year or so...

I felt it's a small price to pay to multiply my efforts as wholesaling is going slow in this small town of 57000 people.