Real estate's "gross rent multiplier" is Wall Street's "sales to revenue",  "cap rate" is roughly "P/E ratio".When evaluating markets and investments I tend to start with GRM (or lazily the 1% rule), then attempt to return a cap rate based on assumptions about costs, then I work my way to multiple years of projections (assumptions about inflation, amortization, tax benefits, etc), and if I am partnering with one of my smart friends I have to pull up an IRR (internal rate of return).I also look at regional employment levels, median income to rent ratio in the zip code etc. 

For market pricing, I collect LTR data from BP rent calculator and multiply by 1.5x.

Also, your total returns go down without any leverage because you lose the multiplier effect of appreciation.Now, to answer your question.

By focusing on multiplying investor returns, we build lasting relationships based on mutual success.In this industry, it's not just about making money for yourself.

In addition to down payment you need reserves which is 12 times or 24 multiplied by all you debt.

Leverage is all about having lowest down payment while waiting for appreciation to multiply your DP.

House-hacking will be uncomfortable, and that discomfort is multiplied when you live in an unfamiliar place.

Cap rate, per door price, gross rent multiplier.

Multiply that by 8 properties and that adds up quicklyAt this point I've amassed around $150k in debt, I'm spending hours a day trying to find large multifamily properties with nothing to show for it and the whole passive income dream I was sold seems to be a huge lie.

Quote from @Evan Polaski: @Chris Seveney, take all the shadiness that can happen in the larger MF space, and multiply it by 10, or 100 for the single family space.