It was a snowball that had turned into an avalanche.

That means in this case you would need to translate that "5" into actual dollars of cash flow per month, then multiply by 12 for the year.Now divide the cash you put in (actual cash, not the percentage) and that will tell you how long it will take you to recover your cost, and where that "cash flow" is now real, and not just a recovery of cost.So, on these cash flow deals (especially the ones you put in 30% of the purchase price), how long will it take you before you recover your cost (the cash you put in,...the DP)?

Now, if we multiply this by 10..... we get the Manhattan to Brooklyn scenario in real terms.Here is the exact statement above multiplied by 10:I fully believe that couples who own a $10 Million apt in an expensive neighborhood would move to a $1.75 Million home that's only 30 minutes away.

My rule of thumb is to count the number of bedrooms in a house and multiply it by $200, that's how much I charge a week. 

Then you need to use the 2016 tax millage rates to multiply out the valuations.This will give you the tax amounts.

Multiply that by 3% basically gives me a discount of $3500 on the house.  

I like a gross rent multiplier (GRM) of 8 or less.

RE Taxes have local area multipliers that are applied to the assessed value to determine the annual re tax.

When you enter the address of a property and the number of bedrooms and baths, Rentometer calculates the rent by multiplying the average area $/SF by the square footage of the subject property.For example, if the average $/SF for 3-bedroom homes in an area is $1.10/SF, and the subject property has an area of 1,500 SF, then the estimated rent would be:1,500 SF x $1.10/SF = $1,650/MoThe problem is that Rentometer, et. al., does not take into account the specifics of a property.Property Specific ExamplesProximity to nuisances - Property A, which is located next to Interstate 15, will have a lower rental price compared to Property B, even if the physical attributes of the properties are the same.

I've also heard that mortgage company will look at what market rents are and take a view on that, rather than literally multiplying rent x cap rate to arrive at a valuation.