To calculate the B/S/H, you take the $140,000 ARV, and multiplied it by 15% which equals $21,000 [$140,000 x .15 = $21,000].You decided that your profit should be $10,000 as the Assignment Fee for a wholesale.The Investor Buyer’s profit is calculated by multiplying the Rehab costs by $1.25 to get $19,000 [$15,000 x $1.25 = $18,750].Now, plug all these figures into the MAO formula and you calculate that the most you can offer on this property is $75,000.

For example, let's say my pro forma uses the following assumptions, excluding any vacancy:Monthly Rent: $2,000Monthly Expenses, excluding mortgage: (Taxes, Insurance, HOA, CapEx, etc): $1,750NOI: $1,550Mortgage Payment: $1,300Monthly Cash flow: $250Now if we assume a 5% Vacancy Rate = $100 and include it as a negative revenue, NOI Margin (NOI / Income): 76.3%Cashflow Margin (Cashflow / Income): 7.9%Gross Rent Multiplier (Property Value / Annual Rent): 7.242% rule-of-thumb (Income / Purchase Price): 1.15%50% rule-of-thumb (Total Expenses / Income): 23.7%If we instead assume the vacancy rate is an expense: NOI Margin (NOI / Income): 72.5% Cashflow Margin (Cashflow / Income): 7.5%Gross Rent Multiplier (Property Value / Annual Rent): 6.882% rule-of-thumb (Income / Purchase Price): 1.21%50% rule-of-thumb (Total Expenses / Income): 27.5%I realize it may not seem like a material difference in this example, but I imagine in some scenarios it  could lead you to make different decisions just based on how it's classified.

So, even though you have a large downpayment saved up, you won't be able to multiply it by 4 to figure out how much property you can buy.  

If you decided to use a average of the maintenance cost for the small car and the wrecked Humvee, you would be wrong on both.Even if such a universal maintenance constant could be determined, multiplying this constant (percentage) by the rent does not work.

If a normal person works 40 hours a week for 50 weeks out the year that’s 2,000 hours, multiply that by 5 years and you have 10,000 hours.I started investing early 2012 the catch is for the past 4 years I have put in 70-80 hour weeks so I’m not certain on where I land in total hours.

Instead of annualizing the GRM multiplying the rent x 12 & dividing the GRM by 12 to get the value do it monthly because it's easier to understand but yields the same income value. 

The rental income specified on the lease, multiplied by 75%, is to be greater than the PITI on your departing residence.

Multiply that x number of months you'd have this guy stay.. 

The overall average price per sqft came out to be $138.25 and multiplied to the homes sqft I came to a price of $198,000.

Then he said that it is industry standard to multiply this amount by 4 to determine the lot price.