Chime in.Many I know use multiplier numbers... some people use spreadsheets or programs... what say you?

Rents total $2400 per month, and you'd want that to be 2% of the "all in cost" of the property, so multiply $2400 by 50 and you get $120K; from that you subtract repairs needed to get at the maximum amount to offer.

Hard work can make you successful; luck is just the multiplier.

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Is there an avalanche of homes coming that we are ignoring?

the latest info i was told was that if its a good house multiply the square footage by 10 dollarsif its bad multiply by 20 dollars per square footand 25 if its uglyto get the reproduction cost. i personally think the guy was trying to screw my math up to keep me under him, he is supposed to be my mentor but when i ask him things like this he acts a Lil funny that's why I'm fishing and looking to learn enough to break away.what do u guys think

The space inside the interior walls is also included in the square footage.Think about it: the tennts will be using the wiring and plumbing that is inside the walls, so the walls are also part of their rental package.For houses, it is exterior measurements multiplied to get the square footage of the house.

The gross rent roll after repairs lease up will be approx. 1.5million/yr and the after repair value of this property will be 12-14million based upon comps or 12-15million based upon rent roll multiplier x8-10.

Both the rule of thumb cited here, "pay for itself in three years" and the "2% rule - monthly rents must be at least 2% of the selling price" are variations on GRM or Gross Rent Multiplier.

Operating expenses are about 50% of gross rents.As a screening tool, if you divide the monthly gross rents by .02 (or multiply the monthly gross rents by 50), that will give you the maximum purchase price for finding a property that will cash flow.