The Gross Multiplier is a variation on the Income-Capitalization Method of appraising single family rental investment property or other type of property. The Gross Multiplier approach is a way to obtain a fast, rough estimate of a property’s value. In this approach, a monthly or annual number is multiplied by a property’s gross income to obtain the property’s value. Dividing the sale price of a similar property by its gross income provides its gross multiplier.
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This sizing gives you info about the value of replacement properties you need to purchase and the amount of related debt on this purchase to fully defer your capital gains associated tax liability.
As an added benefit you will receive a comparison of your current income vs potential replacement property income that includes an assessment of income tax benefit between the
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