.** Purchase & Rehab **Purchase Price: $115,000 ($76/sq. ft.)Purchase Costs: $3,450Rehab Costs: $7,500Down Payment: $28,750Total Cash Needed: $39,700** Financing **Loan Type: AmortizingLoan Amount: $86,250Loan to Value: 75%Loan Term: 15 YearsInterest Rate: 4.5%Monthly Payment: $660** Cash Flow (Monthly) **Rent: $1,260Vacancy: -$126 (10%)Expenses: -$504 (44.4%)NOI: $630Mortgage Payment: -$660Cash Flow: -$30** Returns & Ratios **Cap Rate: 6.6%Cash on Cash: -0.9%Return on Investment: -3.9%Return on Equity: -0.9%Internal Rate of Return: -3.9%Rent to Value: 1.1%Gross Rent Multiplier: 7.6Debt Coverage Ratio: 1

We developed a scorecard to rate properties:•Property has the potential to rent for $1000•Minimum Cash flow of $300 per month•Cash on Cash Return => 15%•Max Initial Investment Price $60,000•Gross Rent Multiplier 5•0perating Expenses 45% +-2% of GR•Property Taxes =<25% of Gross Rent•10 year value possible $100,000Only two of the five properties met most of the desired criteria.

Like in my area, I'm sure that your "assessed value" is just a derivative of the cash value of the property, and its only purpose is for computing the property taxes by being multiplied by a "millage rate" or some similar tax rate.

So, 3,600 / .02 = $180,000 maximum acquisition cost.As an alternative, you can multiply the gross rents by 50, that is the same as dividing by .02.So, with the numbers you gave, $180,000 minus repairs would be the most you could pay for the property.

My question is Should I refinance and use the cash for the BRRRR strategy and be patient until I find a property or should I buy multiply turn key properties and spread the cash out by just putting the down payments and the start mortgage ???   

Whatever your cash flow is, multiply by 12 and divide by total cost of your investment (down payment, carpet, appliances, paint, your time converted in money).

It says to take your monthly rent, multiply it by 50%, then subtract out the mortgage payment, and what is left is your monthly cash flow.

I have it sitting on an interest yielding savings account but of course that will multiply very slowly.

one bedroom apartments are taken mainly by transient men if you look at the rent rolls for that quad they're all one beds you will find that there's High turnover and partial pays another words some percentage of those four units don't pay the whole month's rent on time they pay fractions of it through the month look for eviction expenses that aren't reported turnover expenses that are understated replacing stolen appliances.a multi-family deal like this is priced as follows take the annual gross actual income not the potential income but actual income multiplied times .4 that represents a 60% expense ratio.

But if you can get a 5-plex up and running for just $50k which will gross $2,125 per month, then I agree with Cody rather than Michael (unless Michael didn't factor that the $425 would be multiplied by 5, every month).