I've set my minimum for a quad to $200 per unit after all expenses and mortgage payment.4plex Property Report:Address: 4plex, USA, Beds/Baths: 8 / 8Type: Multi-Family** Purchase **Purchase Price: $288,000 ($0/sq ft)Purchase Costs: $8,640Rehab Costs: $0** Financing **Down Payment: $72,000 (25%)Mortgage Amount: $216,000Total Cash Needed: $80,640** Cash Flow (Monthly) **Rent: $3,000Vacancy: -$249 (8.3%)Expenses: -$1,318Net Operating Income: = $1,433Mortgage Payment: -$1,160Cash Flow: = $273** Returns **Cap Rate: 6%Cash on Cash: 4.1%Return on Investment: -3%Internal Rate of Return: 8%Rent to Price: 1%Gross Rent Multiplier: 8Powered by DealCheck Mobile Apphttp://DealCheckApp.com

(Gross Rent Multiplier) I have two houses where the GRM at purchase was less than 100 (better), and a number of others where it was greater than 100.  

If you multiply these scenario by 4 homes and I can't use any rental income, you can see why my debt to income ratios would be out of whack unless the HELOC will consider the rental income off these homes.

i see what the arv is and then i multiply it by .7 and i give them that as the ballpark number. 

Purchase Price:$78,000.00Purchase Closing Costs:$1,500.00Estimated Repairs:$10,000.00Total Project Cost:$89,500.00After Repair Value:$90,000.00Down Payment:$5,250.00Loan Amount:$72,750.00Amortized Over:30 yearsLoan Interest Rate:4.00%Monthly P&I: $347.32Total Cash NeededBy Borrower:$16,750.00Monthly Income: $1,300.00Monthly Expenses: $1,011.15Monthly Cashflow: $288.85Pro Forma Cap Rate: 8.53%NOI: $7,634.00Total Cash Needed: $16,750.00Cash on Cash ROI: 20.69%Purchase Cap Rate: 9.79%Total operating expenses: $663.83Mortgage expenses: $347.32Vacancy:$78.00Repairs :$130.00CapEx:$130.00Insurance:$100.00Management:$130.00P&I:$347.32Property Taxes:$95.83Income-Expense Ratio (2% Rule): 1.45%Total Initial Equity: $17,250.00Typical Cap Rate: 8.00%Gross Rent Multiplier: 5.00Debt Coverage Ratio: 1.83%ARV based on Cap Rate: $95,425.00Income-Expense Ratio (2% Rule): 1.45%Total Initial Equity: $17,250.00Typical Cap Rate: 8.00%Gross Rent Multiplier: 5.00Debt Coverage Ratio: 1.83%ARV based on Cap Rate: $95,425.00

Purchase Price: $230,000.00Year built: 2009Income expense ratio: 1.13%Gross Rent Multiplier: 7.37Debt Coverage Ratio: 1.48%Monthly income: $2600 (assuming both sides occupied and no section 8 tenant)Monthly Expenses: $2070Monthly Cash Flow: $530My main question is: Since Ill be occupying one side for a year, will it be worth it to have negative cash flow for a few months to a year while the section 8 tenant is occupying and I am occupying the other side?

Multiply that by 20 homes and you're talking about a raise of 4k a month!  

But I just suggest keeping a reasonable amount of debt and using the velocity of money to multiply your windfall into more, much faster with the help of that tax relief.Sorry if long winded.

At first my goal was just to flip 4 houses a year to make an additional 40k a year and then I went to a training with Robert Sheman and he talked about making a quantum goal (taking your goal and multiplying it exponentially).

I know you arent well versed on my market and cant pull a GRM out of thin air, but would you multiply one of the NOI by a GRM with checking sched-Es and rent rolls as contingencies?