I make three times what the rent is.Me.....Thats not what I asked you....I asked you what is your gross monthly income before taxes.Her .....About $1,400Me.....Ma’am the rent is $595/mo and if you multiply that by three that means we want your gross monthly income before taxes to be about $1800 not $1400.Her.....Look, I’m at work right now why are you asking me all these questions like this...I don’t be trying to discuss this kind of stuff while I’m at work...dang!

Multiply by 5 years and its a lot of $.

What I’m worried about is if we will see some kind of multiplier effect here amongst the healthy sub 50 set.

Note I even used a higher multiplier for the old value (which does reflect reality in San Diego market).Note the actual cash flow is not the initial cash flow but is the cash flow that is actually realized over the holding period of the property. 

There are also a lot of home owners that want to cash out in this high equity market before anything changes so they have more room to negotiate.Most owners who purchased these homes got a great deal 3-5 years ago and now are sitting on equity that has multiplied by 100.

yeah, a hell of a lot more right, a multiplier to this. 

Multiply that by the 12 houses you intend to flip in a year and you just dropped your income by 60K in one year because of an ordinance that is currently illegal in the State of Oregon.Account ClosedHow dare you bring logic and math into this!

Your financing costs and payment as well as your property tax will be based on price, so run 5 properties from minimum to maximum price for your criteria, that will give you your debt service multiplier.

**Gross Rent Multiplier (GRM)**: A formula used to estimate the value of a property by dividing the property's price by its gross rental income.17.

Also, $100 divided by the average gas tax in the US of $0.48/gallon yields multiplied by the average MPG (25) of a US vehicle equals 5200 miles not 10,000.