We tend to target a GRM (Gross Rent Multiplier) of 10 or less, which puts you just under the 1% rule.

No, I don't personally use Shiseido because I'm already too wrinkly.Suppose, you own a 4-plex or more units and today for most properties the Gross Multiplier is 18+So, when your tenant moved you just earnedAdditional Gross Income of $1800 per year X Gross Multiplier = $32,400 is the amount you can add to the price for your property if you want to sell it PLUSAt the end of the first year you earned $32,400 + $1800 from additional rent = $34,200Now, lets look at this if you buy 4 units, increase the rents $150 for 4 units the day you buy the property, increase the rents $50 every year and I will assume you are currently cash flowing not less than $200 per unit.You are going to be FILTHY RICH since you have the common sense to increase rents!

Monthly Income:      Monthly Expenses:       Monthly Cash Flow:      Pro Forma Cap Rate:$1,550.00                     $2,248.06                       -$698.06                            2.35%     NOI                   Total Cash Needed      Cash on Cash ROI            Purchase Cap Rate$8,124.00                     $20,349.00                      -41.17%                            2.35%======Financial Projections========     Total Initial Equity: -$334,650.00     Gross Rent Multiplier: 18.55      Income-Expense Ratio (2% Rule): 0.44%     Typical Cap Rate: 2.35%      Debt Coverage Ratio: 0.49     ARV based on Cap Rate: $345,000.00=======50% Rule Cash Flow Estimates=======     Total Monthly Income: $1,550.00     x50% for Expenses: $775.00     Monthly Payment/Interest Payment: $1,375.06     Total Monthly Cash Flow using 50% Rule: -$600.06========Analysis Over Time==========Annual Growth Assumptions    3%                   2%                3.4%Expenses         Income       Property Value_______________________________________                                        Year 5Total Annual Income        $20,536Total Annual Expenses      $28,645Total Annual Cashflow      -$8,109Cash on Cash ROI             -39.85%Property Value                 $407,776Equity                              $111,347Loan Balance                   $296,429Total Profit if Sold            $49,939Annualized Total Return       28%