Buying a Fourplex

[James Syed]

Hi everyone,

There so many formulas / equations when it comes to buy an income property, such as cash on cash return, cap rate, debt coverage ratio, break even ratio, gross rent multiplier, price per unit, price per square feet, 50% rule, 2% rule, etc. There is no silver bullet when deciding the purchase price.

My question is, what formulas are a must in order to estimate purchase price?

I'd appreciate any suggestions.