You've essentially generated $40,000 with $30,000 which has multiplied your original investment by 1.3.

There’s a multiplying effect when you rehab a property.

Now multiply those hours by a reasonable rate. 

Many respected experts will typically advise using a multiplier somewhere around 0.45 and 0.50.

Why multiply by 0.7? 

One great metric to add to the mix is GRM (Gross Rent Multiplier).

The building has a Gross Multiplier of 18.   

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.