I have heard from a Lender, that multiplying the Price at which you are willing to pay for a house by 7 , will give you a close estimate on what you can expect your monthly note to be ( this includes Interest, Taxes and Insurance ) all included in that monthly note ( PITI ) Thanks BP members - Michael

Multiply that by four.If your question is can you convert this multi-unit building into condos (which you could then sell as individual units) that's an entirely different set of challenges.

I just do a rental multiplier (out of laziness).

. :) 'go forth & multiply' :)

Multiply that by dozens of new investors fresh out of a Fortune Builders or Montelongo 2 day free seminar, and the local hard money lenders get deluged with "I'm looking to build my power team, what are your criteria?".

Hi everyone,There so many formulas / equations when it comes to buy an income property, such as cash on cash return, cap rate, debt coverage ratio, break even ratio, gross rent multiplier, price per unit, price per square feet, 50% rule, 2% rule, etc.

Add up all the monthly rents from the apartments, and multiply by 12 to get your gross yearly income from the building.Now you'll need to figure in expenses.

Just wanted to get everyones opinion on the following method for calculated ARV.I have 3 recent sales all 3 BR 1- 2 bath with a garage, But the square footage is much smaller and overall lot size is also much smaller compared to the property in question.Is it acceptable to use the average price per squarefoot of the comparables and multiplying it with the squarefootage of the property to calculate the ARV?

He also emailed out some of his slides, spreadsheets and documents with us so we have the details to hand.I thoroughly learned all the math to buy a good deal: maximum allowable purchase price, cost per unit, gross rent multiplier, net operating income, cap rate, debt service rule of thumb (.007), profit per unit, cash on cash return, coverage ratio and expenses rule of thumb percentages.I learned questions to ask a broker, the order to do things (check math before offering, confirming expenses before viewing property), how to use hard money lenders, negotiating with vendors and dealing with their objections, using vendor take back strategies, what to do in due diligence (everything), a list of clauses with how they benefit the purchaser and how to negotiate with them, how to stack the clauses, strategies for becoming a RE entrepreneur, ideas for creative financing, how to do no money down deals, how to make offers, what types of exit strategies affect the negotiations and more.I haven't spent much time on this site yet so this is probably covered along with lots more.

Then multiply that by the many other deals he is doing and that is quite a bit of good for the community.