Make it, keep it, and multiply it, as Uncle GC says :)

They'll talk to you to encourage you to get preapproved, and maybe show one house to get you motivated to do so, but that's a different thing than spending 2.5 hours showing you 10 houses this weekend.YMMV depending on if you use one of the part time PTA parent agents that are seemingly multiplying in number of late, of course.

That gets really expensive and when you multiply it by 5x most people find they try to tread water by going back to a day job and eventually can't sustain. 

Prepared By     Key Investment Criteria Client Name     Max Offer  $       425,000   Property Address     Down Payment  $                 -    Number of Units 12   Cash Flow (Per 100K) $88.30   List Price  $     425,000 % of List Price   Cash Flow (Monthly)  $         375.29   Offer Price  $     425,000 100%   Total Cash In  $    10,000.00   ARV/Appraised Value  $     450,000   Debt Service CR 1.16 Pref >1.2 Discount (%,$) 0%  $                 -     Debt Yield Ratio 7.65% Pref >10% Purchase Price (Max Offer Price)  $     425,000     Cap Rate 7.47% Pref >8% Percent Down 0%     LTV 1.00 Pref <.75 Down Payment Amount  $               -      Rent/Price Ratio 1.35% Pref 1.25% Amount Financed  $     425,000     COC ROI Year 1 218.0%   Interest Rate 5.20%     (Exp+Int)/Income 84%   Costs of Repairs  $         5,000     Gross Rent Multiplier 6.3 Pref <9 Closing Costs  $         5,000     COC Return 45.0% Pref >10% Total Cost  $     435,000     Break Even Ratio 93% Pref <85% Length of Mortgage (Years) 30     Expense Ratio 53% ~50% Payment Monthly Annual   ARV-Total Cost  $         15,000   Monthly Mortgage Payment $2,333.72  $      28,004.65   % Investment of ARV 96% Pref <75%     10 year Return 65% $284,164 Rental Income Monthly Annual   15 Year Return 113% $490,037 Unit A (10 unit Apt)  $    4,550.00  $      54,600.00   20 Year Return 172% $748,269 Unit B (Duplex)  $    1,250.00  $      15,000.00       Unit C  $               -   $                  -    DSCR greater than 1.45 1.16 Unit D  $               -   $                  -    Standardized Cashflow >180 $88.30 Gross Rental Income  $    5,800.00  $      69,600.00   LTV less than .76 1.00 Vacancy Rate 8%     ROI year 1 greater than 20% 218.0% Net Rental Income  $    5,336.00  $      64,032.00   Expense ratio between 45 and 55% 53%     Positive initial equity  $     15,000 Expenses Monthly  Annual   15 year return greater than 115% 113% Property Management Fees  $           320.16  $       3,841.92 6.0% Total Cash In Less than 50K  $     10,000 Leasing Costs  $                  -    $                  -  0% DYR greater than 9%   7.65% Maintenance Reserve  $           750.00  $       9,000.00         Utilities  $           375.00  $            4,500         PropertyTaxes   $           640.17  $       7,682.00     Insurance  $           325.00  $       3,900.00       Other (Snow, Lawn Care, Trash, etc)  $           216.67  $       2,600.00     Total Expenses  $    2,626.99  $      31,523.92               Net Operating Income  $    2,709.01  $      32,508.08                   Mortgage Payment  $    2,333.72  $      28,004.65         Total Cash In (Downpayment + Repairs)   $   10,000.00           Net Cash Flow  $       375.29  $       4,503.43                   Investment Analysis         Appreciation Rate (20 YR AVG = 4.4%) 2.5%           Rent Appreciation (20 YR AVG = 3.1%) 2.5%         Cost to Sell Property 0.0%        

However when I try to do the comps (and maybe I'm doing it wrong) I add 4 properties most recent sold with around the same criteria as the property...multiply by 4, and my answer is coming up less than the value of the property.

multiply that times 12 then multiply that times the cap rate. 

It is called multiplier effect.  

The Aussies always talk about rentals as Gross yield  and of course we have an appraisal method in the US that is GRM  Gross rent Multiplier.. 

This ”multiplying the acreage in each soil group and farm woodland by the applicable agricultural assessment value.

While so many focus on the low yield from a cap rate perspective, don't forget that lower cap means you have a stronger multiplier for the value the rehab and subsequent NOI increase brings when you refi or cash out.