I know all markets are different but is there an average rent ( or guide ) per door that should met in relationship to the price of a house so that your monthly mortgage payment can be made. For an example: a duplex rent in each unit $550 /month and they want $100k for the house. Is this a fair price ? Say a chart that says a $130k duplex each door the rent should be "X", a 130k triplex each door the rent should be "Y". Say the chart goes in $10k increments from $60k to $400k, single homes. duplexes, triplexes, quads, etc.., Utilities included (water, garbage,...,), Utilities not included. How much rent per door ? Thanks in advance
Normally what I use is the rent to value ratio. So for a $100k property, I want rents to be over $1000 for it to make sense. 1% rent to value ratio should be minimum.
GRM (Gross Rent Multiplier) is one of the standard methods of appraisal, but the secret sauce is knowing the expected GRM for that type of property in that area. Once you do all the numbers for a few properties you'll get a feel for what GRM will work for you.
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