Valuing Asset After Construction Work: Cap Rates VS Comps

[Golan Corshidi]

Hey all!

I am a bit new to the real estate investing world and have been practicing underwriting deals.

I am looking at value-add deals that may require significant construction (ADU's, garage conversions, etc).

When trying to forecast the value of the property after the work is done, what tools/framework do you use?

Specifically, do you look at comps on the market or try to find what value would be based on the cap rate? 

Any other resources when it comes to valuing the asset after the work is done would be much appreciated.