Once it's stabilized, gross monthly rents will be $2600.

I know the formula is Net Operating Income/Gross Rental income.

Rules of thumb are OK for eliminating multiple prospects, but at some point you have to look at trailing financials and use them to make your future assumptions.After you have looked at a few deals you will begin to get an average of certain costs, not their $ amount but their ratio of gross operating income.

Annually I collect $25k-$30k gross for rental income total for both properties (sometimes rent a room out in my other house).

It generates an income of $500 per unit per month, total gross of 2000 per month.

For example:On one 48 unit apartment I have the monthly gross income is $35,000.

This is considered earned income (just as if you were an employee or a business owner buying and reselling any other product) and you will be taxed at your marginal tax rate.

If you are factoring properties into your comps that weren't sold for FMV then you comps will be skewed in a way that isn't giving that area a fair picture of what you or your rehabber can sell a house for IF it is properly marketed and advertised.Now when you're dealing with rental property comps are one component but many times other factors are more important to a rental property investor (i.e. possible cash flow & ROI, gross rent multipliers, or other "magic" numbers).

It may not be the market for everyone but my $20,000 investment grosses $7500 a year in rental income.

Also the chain-link is gross.