how will a bank value an apartment building for financing?
I own several residential properties and have used the BRRR strategy successfully there, and am now doing my research to make the move into commercial-multifamily (small-medium apartment complex). I am very familiar with the residential loan process, but have no experience in commercial financing (beyond what I have read) and am uncertain about how a bank will value such a property. Specifically, how do I know what cap rate (or GRM?) a bank will use in valuing a property when I go looking for a loan?
I'm interested in the Portland/Seattle metro areas - is the market relevant to what cap rate a bank will use for valuation?
Thanks in advance!
-Ryan