Purchase InfoPurchase Price $660,000- First Mortgage -$462,000- Second Mortgage -$0= Downpayment $198,000+ Buying Costs $13,200+ Initial Improvements $10,000= Initial Cash Invested $221,200Square Feet (21 Units) 14,250Cost per Square Foot $46Monthly Rent per Square Foot $0.82Cost per Unit $31,429Average Monthly Rent per Unit $557Mortgages First SecondLoan-To-Cost Ratio 70% 0%Loan-To-Value Ratio 70% 0%Loan Amount $462,000 $0Loan Type AmortizingTerm 30 YearsInterest Rate 6%Payment $2,769.92 $0.00Financial Metrics (Year 1)Annual Gross Rent Multiplier 4.7Operating Expense Ratio 35.9%Debt Coverage Ratio 2.57Cap Rate (Purchase Price) 13.0%Cash on Cash Return 23.6%Income Monthly AnnualGross Rent $11,700 $140,400Vacancy Loss -$585 -$7,020Operating Income $11,115 $133,380Expenses (% of Income) Monthly AnnualCleaning & Maintenance (9%) -$1,000 -$12,000Insurance (4%) -$416 -$4,992Management Fees (9%) -$1,000 -$12,004Taxes (7%) -$782 -$9,387Utilities (6%) -$615 -$7,380Garbage Collection (2%) -$176 -$2,108Operating Expenses (36%) -$3,989 -$47,871Net Performance Monthly AnnualNet Operating Income $7,126 $85,509- Mortgage Payments -$2,770 -$33,239- Year 1 Improvements -$0 -$0= Cash Flow $4,356 $52,270

Get an average sqft. and multiply that by your home's sqft. 

If you multiply $253,000 by 70% it equals $177,100.  

Even when you have worked out your own 'rules' that should be applicable to your market, I would still recommend that you NEVER multiply out that percentage to arrive at your 100% Maximum Offer!

Your max offer formula should look like thisMax offer = ARV x 0.70 - estimate repairs  <-----------so your ARV is 310k multiply that by the rule of thumb 0.70 and you got 217k.

To simplify how you view the value of the time involved, try to quantify the number of hours/month spent dealing with misc. tasks, then multiply that times a reasonable hourly fee.

Shame on them.Now if you have smaller multi families that are no so physically comparable you can use a GRM gross rent multiplier.  

Some states will "make them pay" for being a month behind and not evict until after multiply months of being behind.I'm not a lawyer, just something I have gone through.

The 40% assessed value is then multiplied by the millage rate to arrive at desired tax.So I'm back to square one.

For all concerned.Acronyms*REI Abbreviations**AFD* - Agreement For Deed*AITD* - All Inclusive Trust Deed*APR* - Annual Percentage Rate*ARM* - Adjustable Rate Mortgage*ARV* - After-Repaired Value*ATR* - Ability to Repay - See CFPB*BOM* - Back On Market*BOR* - Board of Realtors*CAD* - County Appraisal District*Cap* - Capitalization*CCIM* - Certified Commercial Investment Member*CCR* - Conditions, Covenants, and Restrictions*CFD* - Contract for Deed*CFPB* - Consumer Finance Protection Bureau - See ATR*CLTV* - Combined Loan To Value*CMA* - Comparative Market Analysis*COCR* - Cash on Cash Return*COF* - Cost of Funds*COO* - Certificate of Occupancy*CRB* - Certified Residential Broker*CRE* - Creative Real Estate*CRS* - Certified Residential Specialist*DBA* - Doing Business As*DCR* - Debt Coverage Ratio*DOS* - Due On Sale Clause*DOT* - Deed of Trust*DSCR* - Debt Service Coverage Ratio*FCRA* - Fair Credit Reporting Act*FED* - Created the CFPB*FFE* - Furniture, Fixture, and Equipment*FHA* - Federal Housing Administration*FHLMC* - Federal Home Loan Mortgage Corporation, Freddie Mac*FMR* - Fair Market Rent*FMV* - Fair Market Value*FNMA* - Federal National Mortage Association, Fannie Mae*FRBO* - For Rent by Owner*FSBO* - For Sale by Owner*GMAC* - General Motors Acceptance Corporation*GRM* - Gross Rent Multiplier*HELOC* - Home Equity Line of Credit*HML* - Hard Money Lender*HOA* - Homeowners Association*HUD* - Housing and Urban Development*HVAC* - Heating, Ventilation and Air Conditioning*IRA* - Individual Retirement Account*IRC* - Internal Revenue Code*IRR* - Internal Rate of Return*IRS* - Internal Revenue Service*L/O* - Lease Option*L/P* - Lease Purchase*L/S* - Landlord Seller*LIBOR* - London Interbank Offering Rate*LLC* - Limited Liability Company*LOC* - Line of Credit*LOI* - Letter of Intent*LP* - Limited Partnership*LPOA* - Limited Power of Attorney*LTV* - Loan to Value*MAI* - Member Appraisal Institute*MAO* - Maximum Allowable Offer*MIP* - Mortgage Insurance Premium*MLS* - Multiple Listing Service*MUD* - Municipal Utility District*NAR* - National Association of Realtors*NIV* - No Income Verification*NNN* - Triple Net Lease*NOD* - Notice of Default*NOI* - Net Operating Income*NOO* - Non-Owner Occupant*O/F* - Owner Finance*OO* - Owner Occupant*P&S* - Purchase and Sale*PITI* - Principal Interest Taxes Insurance*PMI* - Private Mortgage Insurance*POA* - Power of Attorney*PUD* - Planned Unit Development*REI* - Real Estate Investing / Real Estate Investor*REIA* - Real Estate Investors Association*REIT* - Real Estate Investment Trust*REO* - Real Estate Owned*RMLO* - Registered Mortg Loan Orginator*ROI* - Return On Investment*RTO* - Rent to Own*SFH* - Single Family House*SFR* - Single Family Residence*Sub2* - Buying property subject to existing financing*T/B* - Tenant Buyer*TAA* - Texas Apartment Association*TAR* - Texas Association of Realtors*TIL* - Truth In Lending*TREC* - Texas Real Estate Commission*UBIT* - Unrelated Business Income Tax*UCC* - Uniform Commercial Code*VA* - Department of Veterans Affairs / Veterans AdministrationFORUM ABBREVIATIONS*AFAIK* - As Far As I Know*AFK* - Away From Keyboard*AKA* - Also Known As*BBIAM* - Be Back In a Minute*BFN* - Bye For Now*BRB* - Be Right Back*BTW* - By The Way*CUL* - See You Later*FYI* - For Your Information*G2G* - Got to Go*IMHO* - In My Humble Opinion*IMO* - In My Opinion*LMAO* - Laughing My *** Off*LOL* - Laughing Out Loud*NT* - No Text*ROFL* - Rolling on the Floor Laughing*ROTFLMAO* - Rolling on the Floor Laughing My *** Off*TIA* - Thanks In Advance