Instead of annualizing the GRM multiplying the rent x 12 & dividing the GRM by 12 to get the value do it monthly because it's easier to understand but yields the same income value. 

Looks like mortgage is over $4K/month on a 30 year mortgage.Purchase Price $950,000Down Payment $70,015 7.37%Mortgage Insurance 35000Closing Costs $18,000.00 4% $18,000.00Interest Rate 4.25%Term in years 25Financed Amount $914,985Payment $4,956.82Renovations/Repairs $20,000Out of Pocket Costs $108,015Monthly Assumed % Manual InputRent $6,000Property Mgmt $480 8.00%Vacancy $300 5.00%Maintenance/Repairs $180 3.00%CapEx $45 0.00% 45Insurance 50 0.00% 50Property Taxes 419.7 0.05% 419.7Rental income tax 0.0 25% 0.0Expenses Subtotal $1,475"Annual % Increase(rent + expenses)" 2.5%1% ruleGross monthly rent should be >= 1% to total purchase price0.63%GRM (Gross-Rent-Multiplier): the lower, the better13.2Cap Rate (Net operating income (annual) / total purchase price): the higher, the better5.72%Net Income After Financing (/mo.) = Net operating income - financing costs-$432years Monthly CashFlow1 -$4322 -$3183 -$2024 -$845 $386 $1637 $2918 $4229 $55710 $69511 $83612 $98113 $1,12914 $1,28115 $1,43716 $1,59717 $1,76118 $1,92919 $2,10120 $2,278 

            - For any part of the project that you finance, whether it be purchase, the rebab, or both, do you simply look at the monthly loan payment for that leverage and multiply that monthly debt service payment by the number of months you expect to hold the property?           

An appraiser will not look at NOI or cap rates, and many residential appraisers may not know what do with those #'s anyway. but they will look at the GRM's (gross rent multipliers). 

The rental income specified on the lease, multiplied by 75%, is to be greater than the PITI on your departing residence.

Multiply that x number of months you'd have this guy stay.. 

The overall average price per sqft came out to be $138.25 and multiplied to the homes sqft I came to a price of $198,000.

Then he said that it is industry standard to multiply this amount by 4 to determine the lot price.

I'm open to all scenarios, whichever ones multiply my money the fastest and to the greatest degree.I'd like to start investing in the Boise, Idaho area.

@Cody Steck - see the link below:http://www.mobilehomeuniversity.com/articles/evalu...I personally see the 70 multiplier as function of an expense ratio and a cap rate derived in a single number.