. $300-$1000kUtilitites: look at your own utility billThere isn't a magic formula that tells any of us exactly what these items will cost.

If the basic qualifying formula is that income must be three times payments(the actual formula is close to this), that means you need to earn much more income to qualify for the investment mortgage. " He goes on to give this example: Home mortgage 1,000 month (which is what I pay) to qual for it at 3x you need 3,000 month income (which I do make) Rental property 1,000 month Again you need 3,000 income, but you no longer have it because 1,000 got subtracted to pay for your mortgage.

Information and knowledge are free for the asking.Take time to learn the terms and concepts as well as $$ formulas.

I have house hacked twice now.I always use these 6 formulas when doing basic numbers on a property.The 1% rule- example is a $100,000 House should rent for around $1,000 per monthThe 50% rule- 50% of the gross rents of the property will go towards expenses on the property that don’t include principal and interest payment.Gross rent multiplier- similar to a P/E ratio where you take the purchase price and divide by the gross rents for the property Cap rate- tells us what a property will produce after expenses.

The greatest tool in the REI arsenal is their ability to understand the formula...not just the answer. 

Excuse my ignorance, but what formulas should I use to find those numbers? 

Figure out an average for all utilities and then split it based on square footage, number of occupants, or whatever formula you decide on.

Hello everyone,What are the mathmatical formulas (cap etc) & some key strategic factors when analyzing first time multi-family property?

The easy formula most investors use is ARV * 70% - repairs = your offer price.

The formula is: Value = NOI/cap rateBear in mind that most investors need the following: 8% cap rate minimum12% cash on cash return (COCR) 1.6 debt service coverage ratio (net income/annual debt payments) if they are going to finance purchase.