My investment is in a mini-storage, and we did look for one that was poorly managed, had high vacancy, and had a disinterested owner.I'm sure it is high risk to buy a property with a high gross rent multiplier.

@Bonnie Low  Depends on market and a lot of other things, but NOT including PITI payments, I use 0.4 as a multiplier for my Tennessee properties to guesstimate expenses.

I hope to multiply my current income by 5 this year (that's a low estimate). 10 would be ideal!

ROI comes into play more in the case of a non-performing note that you foreclose on and then sell the property, or if you get the note re-performing and then sell the note.One way I've seen ROI used in the "performing note held for cashflow" situation is to take the monthly payment multiplied by 12 and then divide by your purchase price.

Then, the appraiser will determine a Gross Rent Multiplier (likely using sold 4-plex prices divided by market rent or their actual rent).

Multiply that by .65 (subtracting 35% expenses) to get NOI = $10,920.

(they use Gross Rent Multiplier on their appraisal form, but same difference) 

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Multiply your total miles by $0.485.

Even if the units increased by only $30k we still made $220k in 4 months.So, plug your numbers into a number cruncher and dump the Colorado properties and purchase no less than a 4-plex because when you own a 4-plex or more units the property increases in value almost exponentially based on the Gross Multiplier when you increase the rents.