For broad based return I multiply the P&I income by 12 months then divide by my desired return.

Three long term tenants but one unit just vacated (they are filling now).Here's the numbers:Price $137,000.00Down Payment $27,400.00Loan $109,600.00ExpensesMortgage $588.36Property Taxes $238.00Insurance $100.00 (estimate)Landscape $50.00Utilities $230.00 (owner reported)Property Manager $193.50 (9% estimate)Vacancy $129.00 (6% estimate)Maintenance $129.00 (6% estimate)Cap EX $129.00 (6% estimate)Total Monthly Cost $1,786.86RevenueRent $2,200 (4 @ $550)Cash Flow:Monthly Net $433.14Yearly Net $5,197.72Return CalcsMonthly Rent Multiplier 1.57%Cash-on-Cash Return 18.97%Cap Rate 8.95%I am investing solely for cash flow and don't expect any appreciation in this area.  

Multiply those costs by the number of LLCs you have.

You multiply x 12=$18,000 Gross Income.

I have been discussing with him about proceeding with the other properties, and he says the best way to value rental property is to multiply the rental income per month by 90-180.

Also if you know how to calculate gross rent multiplier, that is another good indicator.

wow I'm 19 yrs old too and was also looking to try my hand at multifamilys I thought like getting a fourplex would be good but these are hard to ind in my area a duplex or TRU is a great idea because of the potential for multiplied cashflow also hopefully you'll attain appreciation my goal was to acquire these build up equity and appreciation and sale and avoid taxes by doing a 1031 exchange and use profits as down payment on an apartment building  but def I think you should start with multi .

For a monthly gross of $2500.My total investment in two years will be about $102,000 on the high end.Breakdown of returns:Gross rent - $30,000Expenses - $6700NOI - $23,000 Cash on Cash return = 23% first yearCAP Rate = 22.55Gross Rent Multiplier = 4.4Estimated property value upon completion of $162,000 Cash is king right?

Look at the Gross rent multiplier.  

Only requirement really is that you make six on-time payments first -- so instead of multiplying the payment at the higher renovation interest rate by 360 and flipping out, multiply it by six and stay calm.