Equity Multiple in Real Estate Investing

How I Used the Equity Multiple Formula to Build My 30+ Property Portfolio (And How It Works with DSCR Loans)

Let’s talk real talk: I didn’t grow my real estate empire overnight or by magic. I used simple math—and one of the most underrated formulas in the game: Equity Multiple.

Now, before you roll your eyes at the word “formula,” trust me, this one’s easy enough that even my 10-year-old could explain it (and he’d probably charge you for the lesson too 😆).

What is Equity Multiple?

It’s just this:

Equity Multiple = Total Cash Received ÷ Total Equity Invested

Boom. That’s it. No calculus, no voodoo. Just a simple way to see how many times you’ve multiplied your money.

If I put in $100,000 and get back $300,000 in the end? That’s a 3.0 equity multiple. I tripled my money. That’s the kind of math I like!

Why Real Estate Investors Love It

Equity multiple is like the GPS for your investment journey. It’s not just about “How much do I make each month?” It’s about, “How much did I make in total—and was it worth it?”

This little formula tells you:

• Did your deal make you rich—or just pay for your coffee habit?

• Is it time to sell, refi, or hold?

• Are you multiplying your money fast enough to hit your goals?

Cash-on-cash is great. DSCR is great. IRR is fancy. But equity multiple? That’s your scoreboard.

How I Used It to Buy 30+ Properties

When I started out, I wasn’t focused on just cash flow. I was focused on scaling. I wanted velocity. I wanted to take my money, grow it fast, and roll it into more deals. So how did equity multiple help me?

1. It Showed Me the Full Picture

A lot of people get stuck chasing $300/month in cash flow. That’s cool, but what if that same property makes you $80K in equity in a few years? That’s the real win.

So I used equity multiple to ask:

• What’s the total return on this deal?

• Including rents, refi proceeds, and appreciation—what’s the total cash received?

If I saw a 2.0 or higher, I knew I was onto something. That meant I was doubling my money.

2. I Used It to Time My Refis and Exits

Let’s say I put $50K into a rental and five years later, I’ve made back $120K in rent + refi money + appreciation. That’s a 2.4 equity multiple.

So now I ask, “Can I pull out that gain and go buy two more properties?” Usually, the answer is yes.

I’m not attached to the property—I’m attached to the math.

3. I Used It to Focus on Multiplying, Not Just Holding

A lot of investors hold properties forever and brag about it. That’s fine if your goal is legacy wealth. But early on, I was focused on velocity—turning one property into two, then four, then eight.

Equity multiple showed me when a deal had done its job, so I could move on.

That’s how I built up to 30+ properties. I treated my money like soldiers—go fight, come back with more troops. 🪖

Real Example: A Florida Deal

Let’s say I bought a house in Florida for $350,000. A few years later, it’s worth $500,000.

Let’s plug that into the formula:

Equity Multiple = $500,000 ÷ $350,000 = 1.43

That means I made a 43% return on my money. That equity growth gave me the power to refinance, pull cash out, and reinvest it.

If I had just focused on the monthly rent checks, I would’ve missed the big picture. But equity multiple told me: “Hey Jorge, your money just grew by 43%! Let’s go buy another one.”

And that’s what I did—again and again.

How Does Equity Multiple Work with DSCR Loans?

Okay, now let’s bring DSCR loans into the mix, because I know a lot of you are using these to fund your deals. DSCR stands for Debt Service Coverage Ratio, and it tells the lender, “Hey, this property can cover its mortgage based on the rent it brings in.”

Most DSCR lenders look for a 1.1 to 1.2 ratio. That just means your rent needs to be 10-20% higher than your mortgage payment.

But what about after you get the loan? That’s where equity multiple becomes your best friend.

How They Work Together:

1. Use DSCR to Buy the Property ✅ You don’t need to show personal income, just prove the rent covers the loan. That gets you in the game.

2. Track Equity Multiple to Measure Your Return 💰 Let’s say you put down $60,000 on a DSCR deal. After five years, you’ve collected $20K in cash flow, and the property went up $80K in value.

Total return: $100,000.

Equity Multiple = $100,000 ÷ $60,000 = 1.67

Now you know your money grew by 67%.

3. Refinance or Sell When the Multiple Hits Your Target 🔁 Let’s say your goal is to double your money. Once you hit 2.0, it might be time to refinance and go do it again.

DSCR got you in. Equity multiple gets you out—with profits.

When Equity Multiple Saved Me from Bad Deals

Look, not every deal is a winner. But equity multiple has helped me spot losers early.

One time, I was holding a property that looked good on the outside. Decent rent, low maintenance, but when I did the math, the equity multiple was barely moving. I had dead equity just sitting there.

So I sold it, took the profit, and rolled it into two better-performing DSCR rentals. Those new deals doubled my money in under four years.

The lesson? Don’t marry the property. Marry the return.

Final Thoughts: Don’t Sleep on This Formula

I’ve seen too many investors ignore equity multiple because it sounds technical. But this little formula is one of the most powerful tools in your toolkit.

It tells you:

• How you’re really doing

• Whether it’s time to hold, refinance, or sell

• And if your strategy is actually working

And yeah—I used it to build my whole portfolio. 30+ properties and counting.

So here’s my advice:

• Use DSCR loans to get into the game

• Use equity multiple to WIN the game

That’s how I scaled—and how you can too.

Keep it consistent, stay patient, stay true—if I did it, so can you! Ready to learn? Let me guide you at propertyprofitacademy.com – Jorge Vazquez, CEO of Graystone Investment Group & its subsidiary companies and Coach at Property Profit Academy

Property Profit Academy:
✔ Learn to buy properties with little to no money down.
✔ Build a $10M portfolio step by step.
✔ Master strategies like BRRRR and house hacking.

Meet our Team of Experts!

My team and I bring over 20 years of real estate experience, with deep roots in Florida’s investment scene. As a licensed MLO, I’ve helped close millions in loans and investor acquisitions. We’ve built strong relationships with wholesalers, probate attorneys, and sellers to source real deals—not just listings. My goal is simple: align your investments with your vision and deliver results that exceed expectations. Connect with Cody at https://graystoneig.com/cody

Hi, I’m Lisa-Kaye Price, Real Estate Lending Specialist at Graystone Investment Group. With 20 years of experience as both a licensed Realtor® and Mortgage Loan Originator, I specialize in helping investors secure smart financing for powerful real estate moves. Let’s connect and talk strategy! Connect with Lisa at https://graystoneig.com/lisa-kaye-price

Jay Michalec is the COO of Graystone Investment Group and a proud U.S. Army veteran. With 25 years in hospitality, Jay brings leadership, service, and operational excellence to real estate. He’s known for keeping things running smoothly and supporting both the team and clients every step of the way. 📅 Connect with Jay: https://graystoneig.com/jay