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).

Do I just take the price per square foot, multiply that by a decent sized bedroom and subtract that from the sold price for the ARV Comp?

I don't know what the seasonality for that market is but if you can figure out the average nightly rate for the year then you multiply that number by the amount of weekend days you estimate will be booked.

That will give you a multiplier once you understand what the NOI of the operation is and what you are actually selling as a revenue stream.  

Multiply that by the cost/month in 4 for each line item, sum them up, round up or add margin, and you now have how much you need currently in cash in your capital reserve account.

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

Normally it's a multiplier of the revenue the business does annually.

If you use hourly labor (Like I do) personal experience helps a lot- take a look at each project and count the days and multiply by your guy’s daily rate, then do a rough estimate for materials.