Vacant Multi Family Value Increase
How do you determine value increase on a vacant multifamily? I know normally you can divide the NOI by the purchase price to to get your Cap Rate and from there you can implement the value increase formula but what if the property is completely vacant?
Number of Units: 7
Unit Rent Per Unit Potential: $800-$850
Purchase Price: $170k
Estimated Renovation Cost: $190k
How can I calculate the value add on a vacant multifamily? I want to see how much the property will be worth after renovations.