That's how you multiply wealth. 

That's how to come up with an offer quickly and easier without making a (bad) estimate of repair costs and multiplying by a percent, etc. 

Then multiply it by the assessed value and to be conservative, by the purchase price.

Hi Gabriel, In a general sense, the rentability of the units will be easier with a garage, but a garage will only generate about $5K-$10K in additional value each, whereas if you convert the 2 garages into a 1BR ADU, with market rent in Bay Ho, call it $1700 monthly and $20,400 annually, would increase the value by the multiplier of that income (call it 17GRM for Bay Ho), would increase the value from an income standpoint by $346,800. 

To determine the assessed value, multiply the taxable value of the home ($200,000) by the assessment ratio (35%): $200,000 X .35 = $70,000 assessed value.To calculate the tax, multiply the assessed value ($70,000) by the tax rate (.035): $70,000 x .035 = $2,450.00 tax for the fiscal year.If the home has already qualified for a 3% or 8% tax abatement, taxes will be figured on the assessed value from the base year it qualifed.

If the total comes out to be over 100% (again, stop laughing), then divide 100 by the percentage sum you got, and take that percentage and multiply each task by it. 

The really big money for rental units is earned starting within a year when you increase the rents even just a little because then your cashflow increases, but the really big money is when you multiply the increased rents times the Gross Multiplier.

Now multiply each of the sum totals for each partner by that number, and you have the end percentage each partner should be getting.The percentages are not just 50/50 because you have 2 partners. 

Multiply by Francis Chan38.

If I multiply Total Turn Cost by the 10 year turn frequency, I get the following:Transient: 10 turns x 3,200 = 32,000 or 3,200/YrPermanent: 2 turns x 2,000 = 4,000 or 400/YrTransitional: 5 turns x 7000 = 35,000 or 3,500/YrBelow I normalized annual turn cost to show how much more annual cash flow the Transient and Transitional segment must generate above the Permanent segment to have the same annual net cash flow.Transient segment: +$2,800 per year more than Permanent.Transitional segment: +$3,100 per year more than Permanent.Based on the above calculations and research concerning cash flow and tenant turn rate from properties that target the three tenant pool segments, I determined that the highest net cash flow (for the same amount of capital invested) is from the Permanent segment.