Let’s say a painter at $30 an hour multiplied by eight hours equals $240 dollars a day.

We tend to target a GRM (Gross Rent Multiplier) of 10 or less, which puts you just under the 1% rule.

It still amazes me how fast REI can multiply on itself so quickly.

The wildfires from November 2016 destroyed quite a few homes in the subdivision, so that does play a part in the decision making.Generally speaking a 6.95 gross rental multiplier (800k price with $115k gross) is a little under the market average for GRM.

If that's the case than all those expenses are multiplied by two giving us a total expense of $22,080 (vacancy rate is taken off of the revenue side not expenses so I'll get to that.)

Multiply that by several properties and it's definitely enough to retire fairly comfortably especially if you have a IRA or 401k on top of real estate.

Prices have multiplied many times in the recent past it looks like .

I have ran the numbers every direction and most every property in the area violates the rules on this site (50% rule, etc) The cap rates are low 6s and the gross multipliers are well north of 10.

Multiply that by 12 and then by some reasonable # of years.

  * Have adequate landlord insurance for each of the rental properties  * Have umbrella policy insurance to cover all the rental properties  * No luxury to setup one California LLC per each rental property for cost reason ($800x + extra $$ for CPA/lawyer, where multiplier x is number of properties)  * Actively doing buy 'n' holdBased on these conditions, here is my understanding.California LLC (or its protection) is not good for one or more of the following:  * Single member LLC  * Carry mortgage on rental properties  (risk of due on sale clause)  * Quit claim deed to LLC (risk of county property tax reassessment and transfer tax)  * All rental properties are in the same LLC  (pointless, just like all under our names)California LLC is good for tax write off, including but not limited to the following