10 Unit Multifamily Valuation

[David Moon]

Hello Community!

Hoping to get some input from all the multifamily veterans out there. I have been analyzing an opportunity to purchase a 10 unit multi family using the handy dandy BRRRR calculator to calculate the NOI and Cap rate for the property. From what I gather, the commercial real estate valuation is NOI/Cap Rate. Am I correct to us the Pro Forma CAP Rate since it's based on after rehab, rent and stablizing the property? Thank you in advance for your help.

[Kim Meredith Hampton]

@David Moon Have you viewed the property, and/or had this inspected? Is this just from an OM, and not actuals? I don’t see things like pest, landscaping, reserves etc…